Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A firm is filling five vacant board seats using the cumulative voting method. There are 2,000,000 shares outstanding. You own 300,000 shares of this company's

A firm is filling five vacant board seats using the cumulative voting method. There are 2,000,000 shares outstanding. You own 300,000 shares of this company's stock and you wish to elect yourself to the board. Can you guarantee membership on the company's board?

A.

Yes, your share ownership is enough to guarantee your election to the board.

B.

No, because in cumulative voting, you need 1,000,001 shares to guarantee election to the board.

C.

Yes, because you own majority of the shares outstanding.

D.

No, you don't own enough shares to guarantee your election.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Finance questions