Pam owns 800 of the 2,000 issued and outstanding shares of Antelope Corporation.There are five members of the board of directors,three of whom are up for election at a shareholders' meeting.If each share of stock is entitled to one vote,what is the maximum number of votes that Pam can cast for any one of the candidates for the positions on the board under cumulative voting?

Question

Quizplus · Accepted Answer

Cumulative voting allows a shareholder to cast all their votes for one candidate, or divide them up among multiple candidates. To calculate the maximum number of votes that Pam can cast for any one of the candidates, we use the formula:

Maximum votes = (number of shares owned / number of board seats) x (number of seats being voted on)

For Pam, this would be:

Maximum votes = (800 / 5) x 3 = 480

Therefore, Pam can cast a maximum of 480 votes for any one of the candidates. The other choices are incorrect because they exceed this maximum amount.

Pam Owns 800 of the 2,000 Issued and Outstanding Shares