- CFA Exams
- CFA Level I Exam
- Study Session 10. Corporate Finance (1)
- Reading 31. Introduction to Corporate Governance and Other ESG Considerations
- Subject 4. Stakeholder Management
CFA Practice Question
In cumulative voting, if there are five board seats open and a shareholder has 100 shares, he could direct ______ votes toward a single seat.
B. 250
C. 500
A. 100
B. 250
C. 500
Correct Answer: C
Cumulative voting is the procedure for voting for a company's directors; each shareholder is entitled one vote per share multiplied by the number of directors to be elected. This is sometimes known as proportional voting.
User Contributed Comments 1
User | Comment |
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ashish100 | mind blown.... good shit |