Question

16 --There are 500,000 shares outstanding and I own 10%. We are electing 5 members to the board. How many shares are required to elect 1 board member, under (a) majority voting rules and (b) cumulative rules?

Answer 1

Answer: Summarized the information provided in the questions there are 500,000 shares *As peo the situation there are 5 lakh share's noe outstanding arich the person on 10% so for electing five members to the board different procedure is required under majority voting Gules and cumulative? Sule. HA) MAJORITY RULE: In this person who is selected should have is more than half of the votes. It is known as the most influential a majority which is decesion making body. If the member is selected out of five from me then there is the bequirement of more than 50% vote for Him (her from my end. In this decision the majority person is aluscus selected. (B) CUMMULATIVE RULE: Cummuktive voting of cumulative Gule is a method to each company's director in this method share holded's can vote equals to the no. of share they hold. This is all depends on the share holder if they want to give their votes to one single candidate

2 one of to the multiple candidates. If we talk about this situation here five members will be elected and foo electing beard membed it all depends on the no. of share holders and the proportion share they have and if I won the 5% share so it depends on me to split my 5% vote to different candidate oo to the same Hence in majority voting rules for one member for the board there should be majority for selecting Him/her but in the cumulative sules it all depends on the share holders & the no.of shoides they have. one. **
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