What does statutory voting allow a common stockholder to do?

Statutory voting is a method of voting used by common stockholders in corporate elections, particularly for the election of a board of directors. This system allows a stockholder to cast one vote per share they own for each board seat that is up for election. For example, if a shareholder owns 100 shares and there are three board seats up for election, the shareholder can vote a total of 100 votes for each of the three seats, resulting in 100 votes per seat.

This structure is straightforward and ensures that the voting power of a shareholder is directly proportional to the amount of shares they hold. Statutory voting is designed to maintain simplicity and clarity in the voting process for each position on the board.

The concept of statutory voting is distinct from cumulative voting, which allows shareholders to allocate their votes in a more flexible manner, such as concentrating all votes on a single candidate. As a result, the correct answer highlights the specific nature of statutory voting, reinforcing the idea that each share translates to one vote for each seat rather than providing any additional voting privileges.