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

With majority voting, each director must receive more than 50% of the votes cast to be elected. To ensure the election of one director, at least 50% + 1 of the total outstanding shares must be voted in favor of that director. Therefore, the minimum number of shares needed to ensure the election of one director is (6.8 million / 2) + 1 = 3.4 million shares. Therefore, the correct answer is option C).

AVIX Has 6