You wish to elect one director from nine to be elected. There are one million voting shares outstanding. Under cumulative voting rules, how many shares are required?

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Quizplus · Accepted Answer

Under cumulative voting, a shareholder may concentrate all votes on one candidate. To ensure election of a director when there are nine to be elected, a shareholder needs a majority of the votes for one seat. The formula is (Total Shares / (Number of Directors to be Elected + 1)) + 1. Thus, (1,000,000 / (9+1)) + 1 = 100,001 shares.

You Wish to Elect One Director from Nine to Be