Galaxy Corporation is holding a stockholders meeting next month. Mr. Starr is the president of the company
Question:
Galaxy Corporation is holding a stockholders’ meeting next month. Mr. Starr is the president of the company and has the support of the existing board of directors. All nine members of the board are up for reelection. Art Levine is a dissident stockholder. He controls proxies for 30,001 shares. Mr. Starr and his friends on the board control 50,001 shares. Other stockholders, whose loyalties are unknown, will be voting the remaining 19,998 shares. The company uses cumulative voting.
a. How many directors can Mr. Levine be sure of electing?
b. How many directors can Mr. Starr and his friends be sure of electing?
c. How many directors could Mr. Levine elect if he obtains all the proxies for the uncommitted votes?
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
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Foundations of Financial Management
ISBN: 978-1259194078
15th edition
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen