Capitol Industries has 5 million shares of stock outstanding. In an election for the board of directors, 80 percent of the shares are voted. The company has seven directors on its board, all of whom are elected annually.

a. If the company uses a majority rule voting procedure, how many shares are required to elect i. One director?

ii. Two directors?

iii. A majority of the members of the board?

b. If the company uses a cumulative voting procedure, how many shares are required to elect i. One director?

ii. Two directors?

iii. A majority of the members of the board? P=758