The Purpose of Cumulative Voting Is

question 64

Multiple Choice

The purpose of cumulative voting is:

• A) to maintain majority control of the board of directors.
• B) to allow minority shareholders 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.

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Definitions:

Independent Agent

An individual or entity that acts in their own interest, usually representing multiple companies in a non-exclusive manner.

Employee

An individual who works part-time or full-time under a contract of employment, whether oral or written, express or implied, and has recognized rights and duties.

Lied

The act of providing false information or statements with the intention to deceive.

Conduct

The manner in which a person behaves, especially in a particular context or situation.