Camm Corp.has 10,000,000 common shares outstanding.Its four directors are elected by cumulative voting.To elect one director,a shareholder must own at least:
A)5,000,001 shares.
B)2,000,001 shares.
C)2,500,001 shares.
D)5,000,000 shares.

Question

Quizplus · Accepted Answer

According to the formula for determining the minimum number of shares required to elect a desired number of directors under cumulative voting,a shareholder of Camm Corp.will need 2,000,001 votes to elect one director: X = (10,000,000)/(4 + 1)+ 1.

Camm CorpHas 10,000,000 Common Shares Outstanding