You wish to be on the board of directors of a company. If you wish to buy as low a percentage of the total outstanding shares as is necessary to guarantee yourself a seat on the board, you should
Look for a ﬁrm that has ____________.

Question

Quizplus · Accepted Answer

Cumulative voting common stock allows shareholders to pool their votes and concentrate them on a smaller number of candidates. This increases the chances of minority shareholders, like investors seeking a board seat, to get represented on the board with a lower percentage of outstanding shares.

You Wish to Be on the Board of Directors of a Company