Answer (C) is correct . A proxy fight is an attempt by dissident shareholders to gain control of the corporation, or at least gain influence, by electing directors. A proxy is a power of attorney given by a shareholder that authorizes the holder to exercise the voting rights of the shareholder. The proxy is limited in its duration, usually for a specific occasion like the annual shareholders’ meeting. The issuer of a proxy statement must file a copy with the SEC 10 days prior to mailing it to shareholders. SEC rules require the solicitor of proxies to give shareholders all material information concerning the issues. A form that indicates the shareholder’s agreement or disagreement must be provided. Also, if the purpose is for voting for directors, proxies must be accompanied by an annual report.
Answer (A) is incorrect because A tender offer is a general invitation by an individual or corporation to all shareholders of another corporation to tender (sell) their shares for a specified price.
Answer (B) is incorrect because A takeover is an attempt by one corporation to take control over another by purchasing a majority of common stock.
Answer (D) is incorrect because A leveraged buyout is a largely debt-financed acquisition of a firm’s publicly owned stock.
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