CFA Level 1 Question of the Week – Corporate Finance

The correct answer is A.

Shareholders can vote without attending meetings. Shareholders may vote at a meeting by attending in person but, in fact, most shareholders vote by “proxy” without being present in person.

Options B is correct. Cumulative voting is a type of voting system that helps strengthen the ability of minority shareholders to elect a director. This method allows shareholders to cast all of their votes for a single nominee for the board of directors when the company has multiple openings on its board. 

Option C is correct. Takeovers benefit investors but threaten incumbent, inefficient management. As such, takeover defenses are not well perceived by shareholders.