CFA Practice Question

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CFA Practice Question

A staggered board ______

I. provides more flexibility in nominating new board members to meet changes in the marketplace than an annually elected board.
II. may serve as an anti-takeover device.
III. may provide better continuity of board expertise than an annually elected board.
Correct Answer: II and III

User Contributed Comments 6

User Comment
danlan Why III?
mtcfa Because only a portion of the board members (ie 1/3) are elected each year. This may provide better continuity than the alternative, which is to nominate 100% of the board members every year.
leo6fin how is a staggered board an anti-takeover device?
vi2009 leo6fin: anti-takeover device because any takeover attempts who want to get his own people into the board will need to wait for 2 years minimal ... staggered (see mtcfa)
schweitzdm thanks vi2009 for that explanation.
khalifa92 and cant take over the whole board at once
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