Question

The voting procedure whereby shareholders may cast all of their votes for one member of the board is called _____ voting.a) cumulative b) deferred c) democratic d) straight e) proxy

Answer 1

A) cumulative

Step-by-step explanation:

Cumulative voting is used by minority shareholders to elect a member of the board of directors. This voting method allows shareholders to cast all their votes for one candidate to the board in order to fill an opening.

Some small corporations may have a majority stockholder (owns more than 50% of the votes), but most corporations, especially large ones, have a lot of minority stockholders. So groups of minority stockholders are formed in order to select board members that represent their best interests. The most common way to do it is through cumulative voting.