Lesson 4

Question 1

Straight voting

Answer 1

A shareholder is entitled to one vote for each share held.

Question 2

Cumulative voting

Answer 2

Shareholder is given one vote for each share owned times each director to be elected.

Question 3

Proxy

Answer 3

A proxy is a power of attorney given by a shareholder to someone else to exercise the voting rights attached to his shares

Question 4

Voting Trust

Answer 4

In a voting trust, each shareholder transfers legal title of his shares to a trustee in return for a transferable voting trust certificate, which evidences equitable ownership of the shares involved and carries with it the right to dividends and other distribution of assets.

Question 5

Pooling Agreement

Answer 5

A pooling agreement is a contract among shareholders whereby they agree to vote their shares in a specified way for a specified period of time.