CFA Practice Question

There are 233 practice questions for this study session.

CFA Practice Question

Cumulative voting is said to be of benefit to ______.
A. minority shareholders
B. majority shareholders
C. neither of them
Explanation: Cumulative voting gives minority shareholders the option to focus all of their attention on a single candidate or decision point. If multiple minority shareholders focus in a single direction together, they often have the power to enact a change or appointment in their desired direction.

User Contributed Comments 1

User Comment
kayak According SEC, "Cumulative voting is a type of voting system that helps strengthen the ability of minority shareholders to elect a director."
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