Series 79 practice questionmediumProxy Contests
What is the objective of a proxy contest?
- ATo register a new debt issuance
- BTo persuade shareholders to vote for an alternative slate or proposal✓ Correct answer
- CTo stabilize an IPO
- DTo exempt a merger from HSR
Explanation
Why B — To persuade shareholders to vote for an alternative slate or proposal
To persuade shareholders to vote for an alternative slate or proposal A proxy contest is a shareholder vote battle, often over board control or corporate policy. Activists use it when they believe the board should be changed or pressured.
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