Together Maynard, Armstrong, Starnes, Tidmore, and Collazos own 51 percent of the shares of Gibson, Inc.Under either straight or cumulative voting, if they vote for the same people, they can always elect the entire board of directors.

Question

Quizplus · Accepted Answer

In straight voting, each share gives one vote per director position, so owning 51% of shares allows them to elect the entire board. However, in cumulative voting, shareholders can allocate all their votes to one candidate, allowing minority shareholders to potentially elect some directors.

Together Maynard, Armstrong, Starnes, Tidmore, and Collazos Own 51 Percent