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Openai/68df4a3a-428c-8013-a459-5cff8e17edde
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===== - Cumulative voting allows minority shareholders to pool all their votes on one candidate, increasing their chances of winning at least one seat. ===== * However, in a staggered board, only a fraction of seats (say 1/3) are up for election in any given year. * This means minority shareholders have fewer total seats to target at once. - Example: In a 9-member board with cumulative voting, if all seats are up for election, a minority block might concentrate votes to win 1 seat. - But if only 3 seats are up for election due to staggering, the threshold of votes required to secure a seat is higher relative to the opportunity, reducing their chances. * Result: Staggering dilutes the effectiveness of cumulative voting, making it harder for minority shareholders to gain representation.
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