There are 3 directors seats up for election. If you own 1,000 shares of stock and you can cast 3,000 votes for a particular director, this is illustrative of:
A) cumulative voting.
B) absolute priority voting.
C) sequential voting.
D) straight voting.

Question

Quizplus · Accepted Answer

Cumulative voting allows shareholders to allocate their votes in any manner they choose, including putting all their votes on one candidate. In this scenario, owning 1,000 shares and being able to cast 3,000 votes for a single director is indicative of cumulative voting, where the number of votes one can cast is equal to the number of shares owned multiplied by the number of directors to be elected.

There Are 3 Directors Seats Up for Election