10. Mr. Frost controls proxies for 32,000 of the 60,000 outstanding shares of Express Frozen Foods, Inc....
Question:
10. Mr. Frost controls proxies for 32,000 of the 60,000 outstanding shares of Express Frozen Foods, Inc. Mr. Cooke heads a dissident group that controls the remaining 28,000 shares. There are seven board members to be elected and cumulative voting rules apply. Frost does not understand cumulative voting and plans to cast 80,000 of his 224,000 (32,000 X 7) votes for his brother-in-law, Jack. His remaining votes will be spread evenly for three other candidates.
How many directors can Mr. Cooke elect if Mr. Frost acts as described? Use logical numerical analysis rather than a set formula to answer the question.
Cooke has 196,000 votes (28,000 X 7).
Step by Step Answer:
Foundations Of Financial Management
ISBN: 9780073382388
13th Edition
Authors: Stanley B. Block, Geoffrey A. Hirt, Bartley R. Danielsen