Yurt Inc. $($Yurt$)$ owns $42\%$ of North Inc.$\text{'}$s $($North$)$ voting shares. Yurt is the largest single shareholder of North's voting shares, with the rest of North's shares being widely held by individual investors. There was a very poor turnout at North's recent annual meeting, enabling Yurt to easily elect the majority of North's Board of Directors. Which of the following statements accurately describes this situation?