How can a proxy contest be used to overcome a capturedboard?
(Select all of the choices that apply.)
A.
Proxy contests are simply contested elections for directors. In a proxy contest, there are two competing slates of directors rather than just one slate proposed by the company.
B.
If a board has become captured or unresponsive to shareholderdemands, shareholders can put their own slate of new directors up for election.
C.
If the dissident slate wins, then the CEO will have succeeded in placing new directors, presumably not beholden to the CEO, on the board.
D.
If the dissident slate wins, then shareholders will have succeeded in placing new directors, presumably not beholden to the CEO, on the board.
E.If a board has become captured or unresponsive to shareholderdemands, the CEO can put a slate of new directors up for
election.
Step by stepSolved in 4 steps
- What is one of the primary roles that agency law plays in partnerships? Group of answer choices: A. Controls formation of the entity. B. Dictate how the partners can operate the business. C. Whether or not a partner can bind the partnership to obligations or liabilities. D. Dictates what the operating agreement must state..arrow_forwardI need all answers explain typing clear urjentarrow_forwardAccountarrow_forward
- Mayflower Trucking Inc. incorporates and issues 1000 shares of common stock. Shawn owns 600 shares of Mayflower stock. If Mayflower is electing three directors and Shawn is the only shareholder to show up at the meeting: there is a quorum. there is not a quorum. a plurality. there is a proxy.arrow_forwardWhich of the following would be considered 'voting power' when talking about stakeholder power. A. A shareholders right to cast a legitimate vote proportionate to the percentage of stock they own. B. Suppliers witholding or refusing to fill orders. C. Citizens voting for candidates that support their views D. Access to valuable data, facts, or details and being able to bring attention to that information.arrow_forwardWhich of the following statements below is correct about shareholders? A. They are the legal owners of business corporations B. They own equal shares of company assets. C. They are nonmarket stakeholders in the company. D. They have no stake in how well the company performs.arrow_forward
- Felicia is starting an e-commerce business. She is deciding which entity to use for the business. All of the following are true related to entity characteristics, except: O You don't necessarily have to create an entity to operate a business. O Cash taken out of partnerships/S-Corps by owners is generally not taxable. O Partnerships and S Corporations, generally, do not pay entity level income taxes OC Corporations pay an entity level tax and any dividends to shareholders are not taxable.arrow_forwardPlease see attachedarrow_forwardA member is entitled to receive money or other assets from the company under certain circumstances. Which of the following statements is FALSE? Group of answer choices A preferential shareholder is entitled to share in the surplus assets of the company, if any, upon the winding up of the company. Dividends are to be declared by the company provided there is sufficient profit for the dividends to be paid. As a general rule, return of capital to the members is not allowed during the life of a company. Distribution to members by the company can take the form of dividends, return of capital and a share of the company's surplus assets, if any, upon the winding up of the company.arrow_forward
- Foundations can fund political campaigns. A. True B. Falsearrow_forwardWhen auditors physically observe various items recorded in property, plant, and equipment, they are gathering evidence related to the audit objective of completeness. Orights and obligations. O existence. O presentation.arrow_forward