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.
E) None of these.

Question

Quizplus · Accepted Answer

Cumulative voting allows shareholders to concentrate all their votes on one director or spread them among several candidates according to their preference. With the given scenario, the shareholder can cast 3,000 votes for a single director, which is possible only with cumulative voting. In contrast, straight voting would limit the shareholder to casting 1,000 votes for each director, and absolute priority and sequential voting are not commonly used in corporate elections. Therefore, cumulative voting is the best choice that fits the given scenario.

There Are 3 Directors' Seats Up for Election