Athletic Elite Inc. has 20,000 shares outstanding and nine directors. Its articles provide for cumulative voting.

1. What number constitutes a quorum of shareholders?

The answer to this question is for the quorum of shareholders at least 10001 shares must be represented. Why 10001 shares must be represented?

2. Assume that the corporation is holding a meeting to vote on a merger. How many votes will Miguel have? The answer is if the corporation is holding a meeting to vote on a merger Miguel will have 500 votes.

Why will Miguel have 500 votes instead of 1000?