What is a proxy takeover?

Definition. A strategy that may accompany a hostile takeover. A proxy contest occurs when the acquiring company attempts to convince shareholders to use their proxy votes to install new management that is open to the takeover. The technique allows the acquired to avoid paying a premium for the target.

A proxy fight occurs when a group of shareholders in a particular company attempts to join together to effect change in a particular area of corporate governance within that company. (See also: How Your Vote Can Change Corporate Policy and Proxy Voting Gives Fund Shareholders a Say.)

Also Know, what is a proxy fight vote? A proxy fight is the action of a group of shareholders joining forces, in a bid to gather enough shareholder proxies to win a corporate vote. These voting bids could include replacing corporate management or the board of directors.

One may also ask, what is a proxy fighter?

A proxy fight, proxy contest or proxy battle, sometimes also called a proxy war, is an unfriendly contest for the control over an organization.

Which of the following defines a proxy contest?

A proxy contest is a campaign to solicit votes (or proxies) in opposition to management at an annual or special meeting of stockholders or through action by written consent.

What is the purpose of a proxy statement?

A proxy statement is a document containing the information the Securities and Exchange Commission (SEC) requires companies to provide to shareholders so they can make informed decisions about matters that will be brought up at an annual or special stockholder meeting.

What is proxy access?

“Proxy access” is shorthand for the ability of a long-term shareowner (or a group of long-term shareowners) to place a limited number of alternative board candidates on the company’s proxy card (ballot) for the company’s annual shareowner meeting.

What does hostile takeover mean?

A hostile takeover is the acquisition of one company (called the target company) by another (called the acquirer) that is accomplished by going directly to the company’s shareholders or fighting to replace management to get the acquisition approved.

What is proxy in business?

A proxy is a person who is designated by another to represent that individual at a meeting or before a public body. It also refers to the written authorization allowing one person to act on behalf of another. In corporate law, a proxy is the authority to vote stock.

How is a takeover performed?

A takeover occurs when one company makes a bid to assume control of or acquire another, often by purchasing a majority stake in the target firm. In the takeover process, the company making the bid is the acquirer while the company it wishes to take control of is called the target.

How does a poison pill work?

A poison pill is a type of defense tactic utilized by a target company to prevent or discourage attempts of a hostile takeover by an acquirer. Such plans allow existing shareholders the right to purchase additional shares at a discount, effectively diluting the ownership interest of any new, hostile party.

How does a hostile takeover work?

A hostile takeover bid occurs when an entity attempts to take control of a publicly traded company without the consent or cooperation of the target company’s board of directors. The first is a tender offer, the second is a proxy fight, and the third is to buy the necessary company stock in the open market.

What does it mean to tender shares?

A tender offer is a type of public takeover bid constituting an offer to purchase some or all of shareholders’ shares in a corporation. Tender offers are typically made publicly and invite shareholders to sell their shares for a specified price and within a particular window of time.

What is proxy war simple?

A proxy war or proxy warfare is a war in which opposite sides use third parties as substitutes for fighting each other directly. The United States and the Soviet Union used proxies to fight during the Cold War.

What was the first proxy war?

The Cold War came to an end with the collapse of the Soviet Union in 1991. The Cold War was often fought between the superpowers of the United States and the Soviet Union in something called a proxy war. Examples of proxy wars include the Korean War, the Vietnam War, the Yom Kippur War, and the Soviet Afghanistan War.

What is the primary purpose of a proxy war?

A proxy war occurs when a major power instigates or plays a major role in supporting and directing the fighting in another country but does only a small portion of the actual fighting itself.

What is proxy IP?

When you connect to the Internet through proxies, the IP of the proxy server will be shown in place of your home IP address. Proxy IP addresses are designed to provide you with more privacy while you surf the web. These numbers are also usually associated with TCP/IP network connections.

What is cumulative vote system?

Cumulative voting is a type of voting system that helps strengthen the ability of minority shareholders to elect a director. This method allows shareholders to cast all of their votes for a single nominee for the board of directors when the company has multiple openings on its board.

Is a proxy server hardware or software?

A proxy server is a dedicated computer or a software system running on a computer that acts as an intermediary between an endpoint device, such as a computer, and another server from which a user or client is requesting a service. A proxy can also log its interactions, which can be helpful for troubleshooting.