Minority shareholders have a greater chance of electing a member to the board of directors if the company uses

Question

Quizplus · Accepted Answer

Cumulative voting allows minority shareholders to pool their votes together and elect a director, even if they own a smaller percentage of the company's shares. Majority voting requires a director to receive more than 50% of the votes to be elected, which can be difficult for minority shareholders to achieve. Minority voting and proxy voting do not necessarily increase the chances of electing a director for minority shareholders.

Minority Shareholders Have a Greater Chance of Electing a Member