The purpose of cumulative voting is
A) to maintain majority control of the board of directors.
B) to allow minority stockholders the possibility of a voice on the board of directors.
C) to obstruct unfriendly mergers and takeover efforts.
D) to prevent the dilution of common stock through preemptive rights offerings.

Question

Quizplus · Accepted Answer

Cumulative voting allows minority stockholders the possibility of a voice on the board of directors by giving them the ability to cumulate their votes and concentrate them on a single candidate, increasing their chances of electing a director even if they own a relatively small percentage of the company's stock.

The Purpose of Cumulative Voting Is