Suppose I have 40% of the 700,000 outstanding shares. How many board members can I elect if we are voting for 10 seats under cumulative voting?
Basic Understanding for Cumulative Voting
Cumulative voting is the procedure followed for electing a new director or board director. Normally, each shareholder is entitled to one vote per share multiplied by the number of directors. Shareholder can vote proportionally to the number of shares they hold and also split the vote across multiple candidate or apply them to just one candidate.
Given in question = 40% of 700,000 = 280,000 shares.
No of director/ seats = 10
Vote under cumulative voting = Number of shares held * No of seats
= 280,000*10
= 2,800,000 votes.
Above votes can be given to a single candidate or it can equally or unequally distribute among 10 candidates. Maximum candidate which you can vote for is 10 and minimum candidate which you can vote for is 1.
On numbers of member you can elect, please see below
Votes needed for needed =S*X/(D+1)
S=(outstanding shares)
X = no of directors you want to select)
D= (Total number of directors+1)
=(7000000*10)/(10+1)
=636,364 votes needed to elect one director.
Number of director you can elect = Total votes you have/ votes
needed for one director
= 2800000*10/636364
= 4.40
In practical sense you can elect 4 members on board.
Suppose I have 40% of the 700,000 outstanding shares. How many board members can I elect...
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?
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?
There are 500,000 shares outstanding and I own 5%. We are electing 5 members to the board. How many shares are required to elect 1 board member under (a) majority voting rules (b) cumulative rules?
Can some explain letter b. Can you show the work for the formula I am confused also how we came up with the 300000 number? The Rainbow Corporation had traditionally been a constant dollar-dividend paying company, with the board enjoying the support of retired investors holding 65% percent of the voting shares. A dissident group of high-salaried young investors holding 30% percent of the voting shares prefers reinvestment of earnings to save personal taxes and, hence, wants to elect board...
Suppose a firm has 55 million shares of common stock outstanding and eight candidates are up for election to six seats on the board of directors. a. If the firm uses cumulative voting to elect its board, what is the minimum number of votes needed to ensure election to the board? b. If the firm uses straight voting to elect its board, what is the minimum number of votes needed to ensure election to the board? (For all requirements, enter...
Suppose a firm has 54 million shares of common stock outstanding and nine candidates are up for election to seven seats on the board of directors. a. If the firm uses cumulative voting to elect its board, what is the minimum number of votes needed to ensure election to the board? b. If the firm uses straight voting to elect its board, what is the minimum number of votes needed to ensure election to the board? (For all requirements, enter...
Suppose a firm has 69 million shares of common stock outstanding and eight candidates are up for election to six seats on the board of directors. a. If the firm uses cumulative voting to elect its board, what is the minimum number of votes needed to ensure election to the board? b. If the firm uses straight voting to elect its board, what is the minimum number of votes needed to ensure election to the board? (For all requirements, enter...
#2. Check my work Suppose a firm has 16.3 million shares of common stock outstanding and eight candidates are up for election to four seats on the board of directors. points a. If the firm uses cumulative voting to elect its board, what is the minimum number of votes needed to ensure election of one member to the board? b. If the firm uses straight voting to elect its board, what is the minimum number of votes needed to ensure...
#3. Suppose a firm has 62 million shares of common stock outstanding and eight candidates are up for election to six seats on the board of directors. points a. If the firm uses cumulative voting to elect its board, what is the minimum number of votes needed to ensure election to the board? b. If the firm uses straight voting to elect its board, what is the minimum number of votes needed to ensure election to the board? (For all...
There are six open seats on a company's board. The total number of shares outstanding is 2,670,500 and cumulative voting will be used to fill the seats. Find the minimum number of shares an investor should own to guarantee that he will get elected to the board