Understanding Cumulative Voting and Shareholder Rights

As a part of its corporate governance policies, XYZ Corporation emphasizes the importance of shareholder rights. Recently, the board proposed a new policy regarding cumulative voting in director elections. This new policy aims to enhance shareholder representation and influence in the governance of the company.

When assessing the implications of this policy change, it is essential to consider how cumulative voting affects the power dynamics between minority and majority shareholders, and the overall governance of XYZ Corporation.

Given this context, which of the following statements about cumulative voting is true?