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"Education is the most powerful weapon which you can use to change the world”
– Nelson Mandela

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Q SECTION 3 1) How do shareholder's exercise their power? 2) What's a proxy? 3) Explain the purpose of cumulative voting SECTION 4 What's a shareholder's derivative suit? How is it accomplished?

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The power of the shareholders are exercised by them by ensuring that directors are voted out (Clarkson, Miller & Cross, 2016). There is the requirement of a unanimous decision to be given by each of the shareholders so that every business decision can be established to be binding as well as legal. Power can also be exercised by shareholders to ensure that specific statements are provided to each shareholder so that every shareholder can get to know about the limitations, privileges and rights regarding the holding of individual shares.