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 shareholder has one vote per share. Therefore, Amy needs to own at least 50% + 1 of the outstanding shares, which is 1,251 shares. Since she already owns 2,500 shares, she needs to own 1,251 - 2,500 = 626 more shares.

Jackson Supply Has 2,500 Shares of Stock Outstanding