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2 . As one of the minority shareholders of the B . Corporation, you are dissatisfied with current operations of the company. You feel that
As one of the minority shareholders of the B Corporation, you are dissatisfied with current operations of the company. You feel that if you could gain membership on the company's board of directors, you could pursue the company to make improvements. The problem is that current management controls percent of the stock, you control only percent and the balance is held by the minority shareholders. There are a total of voting shares. Ten directors will be elected at the next annual stockholder meeting.
a If voting is noncumulative, can you elect yourself director?
b Suppose you are able to persuade all the minority shareholders that you should be elected. If voting is noncumulative, can they select you?
c If voting is cumulative, can you elect yourself as a director?
d What percent of minority shares other than you own will you need to have voted for you to be certain of election?
e What is the number of directors the minority shareholders can elect with certainty?
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