Tunso Corp. has 1,000 shares of stock outstanding that are permitted to vote for directors. If Tunso Corp. permits cumulative voting, a minority shareholder would need to vote how many shares to elect one of three directors?
A) 251
B) 501
C) 201
D) 334

Question

Quizplus · Accepted Answer

In cumulative voting, a shareholder can concentrate all votes on one candidate. To elect one out of three directors, the formula is (Total Shares / (Number of Directors to Elect + 1)) + 1. So, (1000 / (3+1)) + 1 = 251.