A Firm Is Using Cumulative Voting and Four Director Spots

question 15

Multiple Choice

A firm is using cumulative voting and four director spots are up for election. There are 3.6 million shares outstanding. How many shares must a minority owner own or control to ensure that he or she can gain control of one seat on the board of directors?

• A)900,001
• B)880,001
• C)720,001
• D)1,800,001
• E)1,750,001

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Definitions:

Nonparticipation

Refers to choosing not to take part in social, political, or formal activities or processes.

Voting Process

The procedure by which individuals express their choice or opinion in a democratic system, often through casting a ballot.

Affluent Members

Individuals or groups possessing a significantly higher than average level of wealth, income, or material possessions.

Policy Advocacy

The act of actively promoting and pushing for changes in public policy to address specific issues or causes.