Suppose Lisa owns 1,000 shares of a corporation.Assume that four directors are to be elected to the board.With ________ voting,Lisa can multiply the number of shares she owns (1,000)by the number of directors to be elected (four),and she can cast all the resulting votes (4,000)for one candidate or split them among candidates as she determines.

Question

Quizplus · Accepted Answer

Cumulative voting allows shareholders to pool their votes and allocate them as they wish among the candidates. This means Lisa can cast all 4,000 of her votes for one candidate or split them among multiple candidates, increasing the chances of electing a director who represents her interests. Noncumulative voting would limit Lisa to one vote per director, and supramajority and preemptive are not relevant to this scenario.

Suppose Lisa Owns 1,000 Shares of a Corporation