If you own 1,000 shares of common stock of a firm and there are five directors being elected, what is the maximum number of votes you can cast for a particular director under cumulative voting?
A)5,000
B)1,000
C)200
D)5

Question

Quizplus · Accepted Answer

Under cumulative voting, you can allocate your votes in any manner you choose. If you own 1,000 shares and there are five directors being elected, you have 1,000 votes for each director, totaling 5,000 votes. You can cast all 5,000 votes for one director if you wish.

If You Own 1,000 Shares of Common Stock of a Firm