Derrick has 2,000 shares of Unistone Corporation, which is planning to vote for two new directors. Through a special voting provision in the corporation's articles of incorporation, Derrick was able to vote for both his preferred candidates with 2,000 shares, which gave him a virtual voting count of 4,000 shares. What voting rule in the articles of incorporation allows Derrick to achieve this?

Question

Quizplus · Accepted Answer

The voting rule that allows Derrick to achieve this is cumulative voting. Cumulative voting allows a shareholder to distribute their total number of votes among multiple candidates in an election, giving more weight to their preferred candidates. In this case, Derrick was able to use his 2,000 shares to cast all his votes for his two preferred candidates (2,000 votes for each), giving him a total virtual voting count of 4,000 shares.

Derrick Has 2,000 Shares of Unistone Corporation, Which Is Planning