a. The firm decides to expand its board of directors from 11 members to 22 members and allows the CEO to pick the additional directors.

Please explain why Management Power increases? b. An activist investor manages to get three of his nominees elected to the board of directors at the expense of management nominees. Please explain why Stockholder Power increases? c. The state passes a law restricting hostile takeovers.

Please explain why this has no effect on management's or stockholder's power?