- 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
An investment fund owns 8 percent of the outstanding voting shares of a public company. There are several larger voting blocks of shares and the investment fund is not assured of being able to elect representation on the board of directors. Which type of shareholder voting right would be most beneficial in allowing the investment fund to ensure its interests are represented on the board?
A. Proxy
B. Cumulative
C. Confidential
Explanation: Cumulative voting enhances the likelihood that minority interests are represented on the board.
User Contributed Comments 1
| User | Comment |
|---|---|
| hzpoh | There is no mention of this term called confidential voting |