CFA Level I · CFA Level I Exam · Equity Jurisdictions, Classes, and the Voting Process
A shareholder cannot attend the company's general meeting and signs a document authorizing another person to cast her votes in line with her instructions. This arrangement is best described as:
This is proxy voting. A shareholder who cannot attend a meeting authorizes another person, often following her instructions, to cast her votes. It differs from cumulative voting, which is about concentrating votes on director candidates, and from a poison pill, which is a takeover defense.
- Aproxy votingCorrect
- Bcumulative voting
- Ca poison pill defense
Explanation
Proxy voting lets a shareholder authorize another party to vote on her behalf, often with specific instructions. Cumulative voting concerns how votes are allocated across director seats, not delegation. A poison pill is an anti-takeover device unrelated to voting by delegation.
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