AVIX has 6.8 million shares outstanding and the firm's charter provides for a majority voting procedure.The company has seven directors up for reelection.What is the minimum number of shares needed to ensure the election of one director?

Question

Quizplus · Accepted Answer

Since AVIX has a majority voting procedure, in order for each director to be elected, they must receive more than 50% of the votes.

To determine the minimum number of shares needed to ensure the election of one director, we need to calculate the minimum number of votes required to achieve a 50%+1 majority.

50% of the total shares = (0.5) x 6.8 million shares = 3.4 million shares

However, since we need to have a majority of votes PLUS 1 additional vote (50%+1), the minimum number of shares needed to ensure the election of one director would be 3.4 million shares + 1 share, which equals 3,400,001 shares.

Therefore, the correct answer is (C) 3,400,001.

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