A shareholder owning 100 shares of stock is voting for the board of directors who are elected by cumulative voting.How many votes did the shareholder cast for Director 'A' if four directors are to be elected and the maximum number of votes was cast for 'A'?
A)25
B)100
C)200
D)400

Question

Quizplus · Accepted Answer

In cumulative voting, a shareholder can allocate their total votes in any manner they choose among the candidates. The total votes a shareholder can cast is equal to the number of shares owned multiplied by the number of directors to be elected. Here, with 100 shares and 4 directors to be elected, the shareholder has 100 * 4 = 400 votes. If the maximum number of votes was cast for Director 'A', then Director 'A' received all 400 votes.

A Shareholder Owning 100 Shares of Stock Is Voting for the Board