Suppose you own 500 shares of Biogen common stock. Two directors are to be elected. Since the firm uses cumulative voting, you can cast as many as _____________ votes for a single director.

Question

Quizplus · Accepted Answer

In cumulative voting, a shareholder can allocate their total votes in any manner they choose among the candidates. Since there are 500 shares and 2 directors to be elected, the shareholder has 500 shares * 2 directors = 1,000 votes. These 1,000 votes can be cast all for one director if the shareholder chooses.

Suppose You Own 500 Shares of Biogen Common Stock