Question

If a group other than current management solicits the authority to vote shares as part of their effort replace the current management team, a _____ is said to occur.

Multiple Choice

A) proxy fight

B) stockholder derivative action

C) tender offer

D) vote of confidence

E) seniority turnover

Answer 1

If a group other than current management solicits the authority to vote shares as part of their effort replace the current management team, a proxy fight is said to occur.

The answer is (a)

(b) is incorrect. Stockholder derivative action  is a lawsuit brought by a shareholder on behalf of a corporation.

(c) is incorrect. A tender offer is a public, open offer by a potential acquirer to all stockholders of a public company

(d) is incorrect. A vote of confidence is used to remove a member of the board