Minority shareholders can also be represented on the board of directors under:
A) Majority voting
B) Cumulative voting
C) Straight voting
D) None of the above

Question

Quizplus · Accepted Answer

Under cumulative voting, minority shareholders are able to sum up their proportionate voting rights and allocate them to one or a few candidates for the board of directors. This allows them to have a better chance of having one of their preferred candidates elected, even if they do not have enough individual voting rights to do so under straight voting or majority voting.

Minority Shareholders Can Also Be Represented on the Board of Directors