Staggered elections
A)apply only in situations where multiple classes of stock exist.
B)primarily benefit minority shareholders.
C)increase turnover on the board of directors.
D)are used with straight voting.
E)help prevent takeovers.

Question

Quizplus · Accepted Answer

Staggered elections are used as an anti-takeover mechanism since it makes it difficult for a potential acquirer to gain control of the board quickly. By only electing some members of the board each year, the incumbent directors can retain a significant amount of control and decision-making power, thereby preventing a hostile takeover.

Staggered Elections