Which of the following statements about common stock voting is (are) correct?
I. Majority voting typically prohibits a group of stockholders with a minority viewpoint from having any representation on the board.
II. Cumulative voting allows each share of stock to represent as many votes as there are directors to be elected.
A) Only statement I is correct.
B) Only statement II is correct.
C) Both statements I and II are correct.
D) Neither statement I nor II is correct.

Question

Which of the following statements about common stock voting is (are) correct? 
I. Majority voting typically prohibits a group of stockholders with a minority viewpoint from having any representation on the board.
II. Cumulative voting allows each share of stock to represent as many votes as there are directors to be elected.
A) Only statement I is correct.
B) Only statement II is correct.
C) Both statements I and II are correct.
D) Neither statement I nor II is correct.

Quizplus · Accepted Answer

Both statements are correct. Majority voting can indeed prevent minority shareholders from gaining representation on the board, as it tends to favor the majority's choices. Cumulative voting allows shareholders to allocate their votes in a flexible manner, potentially enabling minority shareholders to secure representation by concentrating their votes on fewer candidates.

Which of the Following Statements About Common Stock Voting Is