Boston Fishery has been experiencing declining earnings but has just announced a 50 percent salary increase for its top executives. A dissident group of shareholders wants to oust the existing board of directors. There are currently 14 directors and 39,000 shares of stock outstanding. Mr. Bass, the president of the company, has the full support of the existing board. The dissident shareholders control proxies for 19,401 shares. Mr. Bass is worried about losing his job.

a-1. Under cumulative voting procedures, how many directors can the dissident shareholders elect with the proxies they now hold? (Round down the final answer to the nearest whole number.)

Number of directors

a-2. How many directors could they elect under majority rule with these proxies?

multiple choice

• One

• Two

• Three

• Four

• None

b. How many shares (or proxies) are needed to elect eight directors under cumulative voting?

Number of shares