If you own 1,000 shares and you can cast only 1,000 votes for a particular director,then the equity features:
A)cumulative voting.
B)absolute priority voting.
C)sequential voting.
D)straight voting.
E)None of the above.

Question

Quizplus · Accepted Answer

This is an example of straight voting, where each share is entitled to one vote and the owner can cast all of their votes towards one candidate or divide their votes among multiple candidates. Cumulative voting allows shareholders to cast all their votes for one candidate or divide them among multiple candidates as they wish, giving the minority shareholders more influence in the board election process. Absolute priority voting is used in bankruptcy court proceedings to determine the order in which creditors receive payment. Sequential voting is not typically used in corporate governance.

If You Own 1,000 Shares and You Can Cast Only