Final answer:
The type of voting that allows Lisa to multiply her shares by the number of directors to be elected and allocate all resulting votes to one or multiple candidates is called cumulative voting. This method gives shareholders like Lisa the power to concentrate their votes and potentially influence the election of preferred board members.
Step-by-step explanation:
In the context provided, Lisa is able to multiply the number of shares she owns by the number of directors to be elected and cast all those votes for one candidate or distribute them among several. This method of voting is known as cumulative voting. Cumulative voting allows shareholders more flexibility to express their preferences and potentially to focus their voting power on electing fewer preferred directors.
With cumulative voting, if there are four directors to be elected, and Lisa owns 1,000 shares, she can cast a total of 4,000 votes (1,000 shares multiplied by 4 directors). She could choose to allocate all these votes to a single candidate or split them among several candidates in any proportion she decides. This system contrasts with majority and plurality systems, where each share typically equates to one vote per director position, without the ability to multiply votes across directors or concentrate them on a single candidate.