Question

Camm Corp. has 10,000,000 common shares outstanding. Its four directors are elected by cumulative voting. To elect one director, a shareholder must own at least:

a. 5,000,000 shares.

b. 2,500,001 shares.

c. 5,000,001 shares.

d. 2,000,001 shares.

Answer 1

Minimum no. of shares need to own = {[1/ No. Of open position + 1)] × No. Of shares outstanding} + To avoid any tie votes

No. Of shares = {[1/(4+1)] × 10000000} + 1

= 2,000,001 shares

Option D is correct answer.