CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 78.1% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
US English

What is a proxy fight?

Proxy fight

A contest for control over an organisation involving a group of shareholders joining forces to gather enough proxy votes to win a corporate vote and effect change in a company, usually by replacing board members.

Where have you heard about proxy fights?

They are often talked about in the context of company takeovers and can be widely covered in the media depending on the business involved. Investors are advised to stay abreast of proxy fights as they can heavily influence a company's stock price.

What you need to know about proxy fights.

Proxy fights usually come about because some shareholders are unhappy with a specific aspect of how a company is run and their suggested changes are met with resistance from the current board. The activist shareholders then try to persuade other shareholders to let them use their proxy votes to support their proposed changes.

The typical objective of a proxy fight is to change management, however, they can also be driven by a desire to spin-off assets or return cash to shareholders.

Related Terms

Latest video

Latest Articles

View all articles

Still looking for a broker you can trust?

Join the 610,000+ traders worldwide that chose to trade with

1. Create & verify your account 2. Make your first deposit 3. You’re all set. Start trading