OmegaByte Corp.has 1,000 shares of stock outstanding that are permitted to vote for directors.If OmegaByte Corp.permits cumulative voting,a minority shareholder would need to vote how many shares to elect one of three directors?
A) 251
B) 501
C) 751
D) 334

Question

Quizplus · Accepted Answer

In cumulative voting, a shareholder can concentrate all their votes on one candidate. To elect one director out of three, a shareholder needs more than 1/3 of the total votes. With 1,000 shares and each share getting one vote, the total votes are 1,000. Dividing 1,000 by 3 gives 333.33, so to guarantee electing a director, a shareholder needs one more vote than this, which is 251 votes.