SIE practice questionmediumVoting Rights
A common stockholder is voting for board members. Which voting method gives small shareholders more influence?
- ACumulative voting✓ Correct answer
- BStatutory voting
- CProxy voting
- DWeighted voting
Explanation
Why A — Cumulative voting
Cumulative voting allows shareholders to allocate all votes to fewer candidates, increasing minority influence. Statutory is one vote per candidate; proxy is a voting method, not a calculation; weighted voting refers to different stock classes.
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