Question

(chapters 39,40,41,42)
question 29 (2.5 points)
monro motorscorporation allows its directors to be elected by cumulative voting. this
a) insures against persons who may \cloud\ the corporate direction.
b) assures directors that they will be selected by their peers.
c) guarantees thors executive officers of the final choice.
d) allows minority shareholders to be represented on the board.
question 30 (2.5 points)
rina and sam are shareholders of scissors, inc. rina’s written permission for sam to vote rina’s shares at a shareholders’ meeting is
a) a proxy.
b) a preemptive right.
c) a violation of the duty of care.

Explanation:

Question 29

Cumulative voting in corporate elections is a method that helps minority shareholders. It allows them to concentrate their votes on a few candidates, increasing the chance of getting their representatives on the board. Option a is incorrect as it doesn't relate to "clouding" direction. Option b is wrong because cumulative voting isn't about peer selection. Option c is incorrect as it doesn't guarantee executive officers' choice.

A proxy is a written permission for someone else to vote on behalf of a shareholder at a meeting. A preemptive right is about buying new shares, and this isn't a violation of duty of care. So the correct term for Rina's written permission for Sam to vote her shares is a proxy.

Answer:

d) allows minority shareholders to be represented on the board.

Question 30