If you own 1,000 shares of common stock of a firm and there are five directors being elected, What is the maximum number of votes you can cast for a particular director under cumulative voting?
A) 5,000
B) 1,000
C) 200
D) None of the above

Question

Quizplus · Accepted Answer

Under cumulative voting, you can multiply the number of shares you own by the number of directors being elected, allowing you to cast all votes for one director. Therefore, 1,000 shares x 5 directors = 5,000 votes.

If You Own 1,000 Shares of Common Stock of a Firm