I'MAStart-UP Corp. issued and sold 2,500,000 common voting shares during its first public stock sale. What is the minimum number of shares needed to be able to elect a new director to the Board?

Question

Quizplus · Accepted Answer

To elect a new director to the Board, a simple majority of the shares is needed. Since there are 2,500,000 shares, more than half of this number is required for a majority. Half of 2,500,000 is 1,250,000, so the minimum number of shares needed is just over this amount, making 1.25 million the correct answer.