Final answer:
A. Proxy Fight. The important mechanism used by unhappy stockholders to replace current management is a Proxy Fight. In order to change the top management, a minimum number of investors required would be the number of shares necessary to reach a majority.
Step-by-step explanation:
The important mechanism used by unhappy stockholders to replace current management is A. Proxy Fight. A proxy fight is a method used by shareholders to gain control of a company by soliciting the votes of other shareholders to remove and replace the current management. This is typically done through a proxy statement where shareholders authorize a representative to vote on their behalf. It requires winning the majority of votes to successfully replace the management.
In the case of the Darkroom Windowshade Company, to change the top management, the minimum number of investors required would be the number of shares necessary to reach a majority. In this case, there are 100,000 shares outstanding, so a minimum of 50,001 shares would be needed to vote for a change in management.
If investors 1 and 2 agree to vote together, they would have a combined total of 38,000 shares. While they would not have a majority on their own, they could potentially convince other investors with smaller holdings to join them in order to reach the minimum requirement.