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What is the significance of adopting the principle of proportional representation in a company?
  • a)
    It ensures that the company's directors are elected solely by the majority shareholders.
  • b)
    It gives minority shareholders a stronger voice in the company's decision-making process.
  • c)
    It restricts the voting rights of minority shareholders.
  • d)
    It allows the company's management to control the shareholders' voting rights.
Correct answer is option 'B'. Can you explain this answer?
Most Upvoted Answer
What is the significance of adopting the principle of proportional rep...
Adopting the principle of proportional representation in a company gives minority shareholders a stronger voice in the company's decision-making process. This principle ensures that the composition of the company's governing body reflects the diversity of its shareholders, including the minority, and prevents the dominance of majority shareholders in decision-making.
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What is the significance of adopting the principle of proportional representation in a company?a)It ensures that the company's directors are elected solely by the majority shareholders.b)It gives minority shareholders a stronger voice in the company's decision-making process.c)It restricts the voting rights of minority shareholders.d)It allows the company's management to control the shareholders' voting rights.Correct answer is option 'B'. Can you explain this answer?
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What is the significance of adopting the principle of proportional representation in a company?a)It ensures that the company's directors are elected solely by the majority shareholders.b)It gives minority shareholders a stronger voice in the company's decision-making process.c)It restricts the voting rights of minority shareholders.d)It allows the company's management to control the shareholders' voting rights.Correct answer is option 'B'. Can you explain this answer? for B Com 2024 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. Information about What is the significance of adopting the principle of proportional representation in a company?a)It ensures that the company's directors are elected solely by the majority shareholders.b)It gives minority shareholders a stronger voice in the company's decision-making process.c)It restricts the voting rights of minority shareholders.d)It allows the company's management to control the shareholders' voting rights.Correct answer is option 'B'. Can you explain this answer? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for What is the significance of adopting the principle of proportional representation in a company?a)It ensures that the company's directors are elected solely by the majority shareholders.b)It gives minority shareholders a stronger voice in the company's decision-making process.c)It restricts the voting rights of minority shareholders.d)It allows the company's management to control the shareholders' voting rights.Correct answer is option 'B'. Can you explain this answer?.
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