A company has four open seats on its board of directors. There are seven candidates vying for these four positions. There will be a single election to determine the winners. As the owner of 100 shares of stock, you will receive one vote per share for each open seat. You decide to cast all 400 of your votes for a single candidate. What is this type of voting called?

Question

Business

Quentin

29 October, 23:58

A company has four open seats on its board of directors. There are seven candidates vying for these four positions. There will be a single election to determine the winners. As the owner of 100 shares of stock, you will receive one vote per share for each open seat. You decide to cast all 400 of your votes for a single candidate. What is this type of voting called?

+3

Answers (1)

Know the Answer?

Elian Duffy · Answer 1

Cumulative voting

Explanation:

Cumulative voting permits shareholders to vote for a single candidate for the board of directors even when there are several openings on the company's board i. e. four in this case. Cumulative voting is usually preferred by minority shareholders as the voting method strengthens their ability to elect a director.