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10 January, 22:09

Which of the following is not a barrier to corporate control? a. antitakeover amendments b. proxy contests c. poison pills d. golden parachutes

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  1. 10 January, 22:13
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    Answer: Proxy contest.

    Explanation:

    In corporate control it is the authority of the corporate organisation to take all the major decision. It takes decisions on matters related to marketing, investment, new project sanctioning, new fund raising, policy of the corporate and etc.

    Among all the options we have proxy contest enable to secure enough votes in the corporate to win over the governance in the corporate. It is more over like an unfriendly war between the corporate allies. It garners support from stakeholders to gain corporate vote.

    However, all the other options such as golden parachutes whereby an employee can get certain benefits if its employments is terminated and antitakeover amendments or poison pills serve as barrier to corporate control as these benefits and amendments causes barriers to making laws and governing them in a corporate. So proxy contest itself being a support mechanism to garner votes in the corporate mechanism do not form a barrier in corporate control.
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