Cumulative voting favors majority shareholders.

Name: Cumulative voting favors majority shareholders.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Ordinarily, each share of common stock is worth one vote, so usually a majority of shareholders can elect directors of the corporation. To give minority shareholders an opportunity to elect one or more directors, some states permit cumulative voting. This system allows shareholders to multiply the number of their voting shares by the number of directors to be elected.

Cumulative Voting Favors Majority Shareholders