There are three seats open on the board of directors of ABC, Inc. Ann owns voting shares of ABC common stock. If ABC uses cumulative voting, the maximum number of shares that Ann can vote for any one position is equal to:

Question

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In cumulative voting, a shareholder may allocate their total votes in any way they choose among the candidates. If there are three seats open and Ann owns a certain number of shares, she can multiply the number of shares she owns by the number of open seats to determine the maximum number of votes she can cast for any one candidate. This allows shareholders more flexibility in influencing the election of directors.

There Are Three Seats Open on the Board of Directors