Jackson Supply has 2,500 shares of stock outstanding. There are three positions open on the board of directors. Amy wants to be elected to one of those positions. How many more shares must
Amy own to guarantee her election if Jackson Supply uses straight voting as opposed to cumulative
Voting?

Question

Quizplus · Accepted Answer

To guarantee her election, Amy must own more than 50% of the outstanding shares. With straight voting, each share is worth one vote, so Amy needs to own 50% of 2,500 shares, which is 1,250 shares. She already owns 625 shares, so she needs to own 1,250 - 625 = 625 more shares.

Jackson Supply Has 2,500 Shares of Stock Outstanding