AFP
CTP · Question #180
(Topic 2) A company is concerned that investor dissatisfaction could lead to a rapid change in its board membership. To prevent this, which of the following strategies should the company employ?
The correct answer is C. Stagger the election of its directors. See the full explanation below for the reasoning.
Question
- (Topic 2)
A company is concerned that investor dissatisfaction could lead to a rapid change in its board membership. To prevent this, which of the following strategies should the company employ?
Options
- AGrant shareowners preemptive rights for new shares.
- BGive shareowners cumulative voting rights.
- CStagger the election of its directors.
- DAllow shareowners to vote by proxy.
How the community answered
(38 responses)- A3% (1)
- B8% (3)
- C84% (32)
- D5% (2)
Community Discussion
No community discussion yet for this question.