- CFA Exams
- CFA Level I Exam
- Topic 3. Corporate Issuers
- Learning Module 3. Corporate Governance: Conflicts, Mechanisms, Risks, and Benefits
- Subject 2. Corporate Governance Mechanisms
CFA Practice Question
Which of the following is least likely classified as a takeover defense?
B. Cumulative voting
C. Golden parachutes
A. Greenmail
B. Cumulative voting
C. Golden parachutes
Correct Answer: B
The ability to use cumulative voting enables shareholders to vote in a manner that enhances the likelihood that their interests are represented on the board. It is a valuable shareholder right.
User Contributed Comments 1
| User | Comment |
|---|---|
| replyneelu | Green mail and golden parachutes can be defined under the correct anase |