Consider the following statements:
(i) Staggering makes it easier for a minority of the shareholders to elect a director when there is cumulative voting.
(ii) Staggering makes takeover attempts less likely to be successful.

Question

Consider the following statements: 
(i) Staggering makes it easier for a minority of the shareholders to elect a director when there is cumulative voting.
(ii) Staggering makes takeover attempts less likely to be successful.

Quizplus · Accepted Answer

Staggering, or the process of having different groups of directors' terms expire in different years, does not make it easier for a minority of shareholders to elect a director under cumulative voting; it actually makes it harder because fewer board seats are available at each election. However, it does make takeover attempts less likely to be successful because a potential acquirer cannot gain immediate control of the board in a single election cycle.

Consider the Following Statements