The cumulative voting system used by firms in the election of directors allows:

Question

Quizplus · Accepted Answer

The cumulative voting system allows a large minority shareholder to elect some directors even if their election is opposed by the majority of shareholders. This provides minority shareholders with a greater say in the election of directors and can promote greater board diversity and independence. However, it may also allow for certain blockholders to elect some directors even if they are barred from participating in internal decision making. Additionally, it does not provide the opportunity for large shareholders to nominate board members through the normal proxy process, as this is a separate process.

The Cumulative Voting System Used by Firms in the Election