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

Question

Quizplus · Accepted Answer

A shareholder voting agreement is a contract among shareholders to vote their shares in a certain way, for example, on the election or removal of directors. Unlike a voting trust, which involves transferring shares to a trustee, or a proxy, which is an authorization to vote someone's shares, a voting agreement allows shareholders to retain ownership and vote their shares directly in accordance with the agreement. Cumulative voting is a method that allows shareholders to concentrate their votes on fewer candidates than there are positions available.

If Shareholders Agree in Writing to Vote in a Specified