In a Proxy Contest Involving Management on One Side and Dissenting

question 108

Multiple Choice

In a proxy contest involving management on one side and dissenting shareholders on the other side,what is true about the right to recover the costs incurred in conducting the proxy fight?

• A) Neither side can recover its costs in the proxy contest.
• B) If the contest involves a policy issue, the winning side can recover its costs from the losing side.
• C) The victorious side can always recover its costs from the corporation in a contest involving a policy issue.
• D) Management is the only side that can ever recover its costs from the corporation in a proxy contest involving a personal issue.
• E) Each side can recover its costs from the corporation in a proxy contest involving matters of policy, regardless of the outcome.

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Definitions:

Capital Account

Represents the net change in physical or financial asset ownership for a nation and includes investments and loans into or out of the country.