Question

which of the following statements is true with respect to cumulative voting? multiple choice cumulative voting requires 33% of board members to be re-elected every three years. cumulative voting gives majority shareholders a better chance of being represented on the board of directors. if 6 directors are to be elected and you own 100 shares, you may vote all 100 votes for one director and none for the others. if 6 directors are to be elected and you own 100 shares, you may vote all 600 votes for one director and none for the others.

Answer 1

In cumulative voting, if you own 100 shares and 6 directors are to be elected, it is true that you may cast all 600 of your votes for one director.

Step-by-step explanation:

The statement concerning cumulative voting that is true is: if 6 directors are to be elected and you own 100 shares, you may vote all 600 votes for one director and none for the others. Cumulative voting is a method used to elect board members of a corporation which allows shareholders to allocate their votes in a flexible manner. Shareholders get as many votes as the number of shares they own multiplied by the number of directors to be elected, and they can distribute these votes among the candidates as they choose.

In our example, if you own 100 shares and 6 directors are to be elected, you indeed have 600 votes, which you can cast all for a single candidate. This system can enable minority shareholders to have a better chance of being represented on the board, as they can concentrate their vote on fewer candidates.