Investors with 30 per cent of the voting stock of a corporation, interested in a seat on the board of directors, had better have __________ voting privileges.

Question

Quizplus · Accepted Answer

Cumulative voting privileges allow shareholders to concentrate their votes on fewer candidates, increasing the chances of electing a preferred candidate to the board, which is beneficial for investors with significant but not majority shares.

Investors with 30 Per Cent of the Voting Stock of a Corporation