Finance Junkie
Posts: 166
Joined: Mon Oct 06, 2014 7:36 am


Postby chandniwadhwani92 » Sun Nov 02, 2014 6:31 pm

In schswer pg 260 it is given if holder has 30% of firm share could choose 3 of 10 directors in cumulative voting but could not elect any director in statutory voting

why cant he elect in statutory????//

Finance Junkie
Posts: 946
Joined: Wed Apr 09, 2014 6:28 am


Postby edupristine » Mon Nov 03, 2014 10:27 am

Suppose, there are 100 shares of a firm. A given shareholder has 30% firm shares i.e 30 shares.

In statutory voting, the maximum votes you can give to a director are 30 and none of the director can be finally elected with 30 votes. A minimum of 50 votes are required.

However in cumulative voting, the given shareholder can give all his 90 (30+30+30) votes to one director thus electing him.

Return to “CFA Level I”


Global Association of Risk Professionals, Inc. (GARP®) does not endorse, promote, review or warrant the accuracy of the products or services offered by EduPristine for FRM® related information, nor does it endorse any pass rates claimed by the provider. Further, GARP® is not responsible for any fees or costs paid by the user to EduPristine nor is GARP® responsible for any fees or costs of any person or entity providing any services to EduPristine Study Program. FRM®, GARP® and Global Association of Risk Professionals®, are trademarks owned by the Global Association of Risk Professionals, Inc

CFA Institute does not endorse, promote, or warrant the accuracy or quality of the products or services offered by EduPristine. CFA Institute, CFA®, Claritas® and Chartered Financial Analyst® are trademarks owned by CFA Institute.

Utmost care has been taken to ensure that there is no copyright violation or infringement in any of our content. Still, in case you feel that there is any copyright violation of any kind please send a mail to abuse@edupristine.com and we will rectify it.