Question
Jack owns 35 shares of stock in Beta, Inc. and wants to exercise as much control as possible over the company. Beta, Inc. has a
Jack owns 35 shares of stock in Beta, Inc. and wants to exercise as much control as possible over the company. Beta, Inc. has a total of 100 shares of stock outstanding. Each share receives one vote. Presently, the company is voting to elect two new directors. Which one of the following statements must be true given this information? a. If cumulative voting applies, Jack can control both open seats. b. If straight voting applies, Jack can control both open seats. c. If straight voting applies, Jack is assured one seat on the board. d. If cumulative voting applies, Jack is assured one seat on the board. e. Regardless of the type of voting employed, Jack does not own enough shares to control any of the seats.
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