The shareholder can cast all votes for a single candidate or split them among various candidates through
A) proxy fights.
B) cumulative voting.
C) call provisions.
D) majority voting.

Question

Quizplus · Accepted Answer

Cumulative voting allows a shareholder to distribute their votes among various candidates in a manner to increase the chances of the candidate(s) they prefer to be elected to the board of directors. This is done by multiplying the number of votes a shareholder is entitled to by the number of board seats being contested, and then distributing these votes as desired among the candidates. Proxy fights typically refer to an attempt by a group of shareholders to gain control of the board or force a change in the company's policies through the solicitation of proxies. Call provisions refer to the right of the issuer to redeem the security under certain circumstances. Majority voting is a simple plurality system where the candidate with the most votes is elected, regardless of whether they have a majority or not.

The Shareholder Can Cast All Votes for a Single Candidate