If shareholders agree to vote in a specified manner for the election or removal of directors,this is known as:
A) a proxy.
B) cumulative voting.
C) a voting trust.
D) a shareholder voting agreement.

Question

Quizplus · Accepted Answer

This is known as a shareholder voting agreement. A proxy is when a shareholder authorizes someone else to vote on their behalf. Cumulative voting allows shareholders to concentrate all their votes on a few candidates, rather than spreading them out among multiple candidates. A voting trust is when shareholders transfer their voting rights to a trustee, who then votes on their behalf. None of these options match the scenario described in the question.

If Shareholders Agree to Vote in a Specified Manner for the Election