UK Accounting Glossary
A proxy fight is a strategy typically used during a hostile takeover. A proxy fight occurs when the acquiring company tries to persuade shareholders to use their proxy votes to install new management, which the acquiring company hopes will be more open and receptive to the takeover. If the shareholders agree to the proxy fight, they’ll attempt to gather enough proxies to win a corporate vote. A proxy fight is a way for the acquiring company to more easily take over its target by forcing the board to accept the deal’s terms through the use of proxies. A proxy fight may also be called a proxy contest. Though common, a takeover need not be the catalyst for a proxy fight. A proxy fight may also occur when a group of shareholders opposes the company’s management and/or position on particularly significant matters.
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This glossary post was last updated: 6th February 2020.