See: Proxy.
"Proxy" = approximation of vote, or voting rights.
When you have someone's proxy, you have their right to vote their shares on their behalf. So when there's a proxy fight, there's a "war" of common stock votes. The common elects the Board. When there's a fight, it usually means that half the holders want one outcome as driven by the board, and the other half want another. So they fight, warring on numbers of votes.
Usually, a huge portion of common shares never vote in a board election, but in cases where there's a fight about it, a big number do. They get calls at home, pushing them to vote one way or another.
It's a fight, a la Wall Street. Fisticuffs thrown as proxy votes.
Related or Semi-related Video
Finance: What is a proxy?8 Views
Finance a la Shmoop. What is a proxy? Well it's kind of an approx-i-mate. As in, it's
not exactly the way dogs mate. Not all of them try to text their goodies to each
other. In the land of Finance, a proxy is simply a substitute.
Someone's vote, for example, can be given to another party, who then acts on behalf
of the person, who was going to vote in the first place. But really couldn't care [coffee drive-thru]
less about the outcome, so she went to Dunkin Donuts instead. That's how
most votes are taken in public companies. Proxies are sent out to shareholders, who
then designate their wishes, to then be submitted to an individual, physically
present at the vote, who then you know votes and that's it.
We'll leave you with final warning. Beware of any incoming texts you may get
from a German Shepherd. [Phone with dog text]
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