Staggered elections
A)allow a portion of the board members to be elected on a permanent basis.
B)increase the difficulties incurred when trying to replace the board of directors.
C)are set forth in supermajority amendments.
D)can be altered on a one-time basis to open all seats on the board to a simultaneous vote if shareholders approve a standstill agreement.
E)increase the probability that a firm will be acquired by a stronger competitor.

Question

Quizplus · Accepted Answer

Staggered elections make it more difficult to replace the entire board of directors at once, as only a portion of the board is up for election in any given year. This can act as a defense mechanism against hostile takeovers.

Staggered Elections