Which of the following is false about the board of directors concerning preferred stock?

The statement regarding the control of voting rights is false in the context of preferred stock. Preferred shareholders typically do not have voting rights associated with their shares, which means that issues such as voting on corporate governance or board elections are generally the domain of common shareholders.

Preferred stock is more about fixed dividends and financial hierarchy than governance. While the board of directors may have oversight of the company’s strategic decisions, including dividend declarations for preferred stock, it is the common shareholders who chiefly exercise governance through their voting rights.

Contrastingly, the other statements highlight truths about preferred stock. The board is not mandated to declare dividends but has the authority to decide whether to do so, and they must seek approval to issue preferred stock, usually from existing shareholders or through constitutional bylaws, depending on the jurisdiction.