Explain the two devices used to give minority stockholders a voice on the board of directors.

Question

Question

business finance

Answer 1

Answer #1

Two devices used to give minority stockholders a voice on the board of directors are :

Cumulative voting - This is a system of voting for seats on the board of directors. In this system, minority shareholders can "cumulate" all their votes for one candidate instead of voting separately for each candidate. For example, if there are three seats up for election, a minority shareholder with one vote can cast three votes for one candidate rather than one vote for each candidate.
Many jurisdictions have laws to prevent oppression of minority shareholders by majority shareholders. A minority director may be mandated, who represents the interests of the minority shareholders.

Answer 2

Similar Homework Help Questions

preemptive right is the right of stockholders to fire and replace the board of directors. the...

preemptive right is the right of stockholders to fire and replace the board of directors. the right of stockholders to supersede the actions of top management. the right of stockholders to acquire a proportional amount of any new issues of common stock. the right of top management to act on behalf of the stockholders. the right of the corporation to enter into legally binding contracts without the direct approval of the shareholders.
QUESTION 9 Stock dividends are declared by the board of directors of the company stockholders of...

QUESTION 9 Stock dividends are declared by the board of directors of the company stockholders of the company chief executive officer of the company chief financial officer of the company
The Board of Directors has asked you to explain the method used to handle uncollectible Accounts...

The Board of Directors has asked you to explain the method used to handle uncollectible Accounts Receivables. They know that you use the Allowance Method but are not familiar with the difference between the Direct Method versus the Allowance Method. Using the textbook as a source, explain each type of method and why ABC Company has selected the Allowance Method. Download the memo template provided below to respond. Keep in mind the intended audience of the memo.

Determining Cash Payments to Stockholders The board of directors declared cash dividends totaling $208,800 during the...

Determining Cash Payments to Stockholders The board of directors declared cash dividends totaling $208,800 during the current year. The comparative balance sheet indicates dividends payable of $50,100 at the beginning of the year and $45,100 at the end of the year. What was the amount of cash payments to stockholders during the year? $
Builtrite's Board of Directors declared a dividend for those stockholders on record (Holder of Record) Ass...

Builtrite's Board of Directors declared a dividend for those stockholders on record (Holder of Record) Ass of Friday, March 21. Builtrite's stock will begin trading exdivedend on... Tuesday, March 18th Wednssday, March 19th Thursday, March 20 Friday, March 21st
You have been asked to give a presentation to your company’s board of directors on the...

You have been asked to give a presentation to your company’s board of directors on the treatment of data as a corporate asset, similar to the treatment of cash, equipment, and facilities. (a) Justify to a skeptical board member why data should be regarded as valuable company assets. (b) Identify and briefly describe two distinct threats that could reduce or destroy the value of data. (c) Recommend measures that the company can take to protect against each of the threats...

Explain why smart devices are desirable and give two examples of how businesses could benefit from...

Explain why smart devices are desirable and give two examples of how businesses could benefit from smart devices.
A board of directors (BOD) is a crucial part of attaining good corporate governance. Explain the...

A board of directors (BOD) is a crucial part of attaining good corporate governance. Explain the main responsibilities of a BOD. Illustrate two typical governance structures of the BOD and further elaborate on the role and extent of employee participation in relation to the two structures. You may include visual aids in your answers.
Determining cash payments to stockholders The board of directors declared cash dividends totaling $1,100,000 during the...

Determining cash payments to stockholders The board of directors declared cash dividends totaling $1,100,000 during the current year. The comparative balance sheet indicates dividends payable of $220,000 at the beginning of the year and $100,000 at the end of the year. This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answer in the question below. What was the amount of cash payments to stockholders during the year? Round...