There are five seats on the board of directors of Atlas Corp.up for election.The firm has 120,000 shares of stock outstanding and uses cumulative voting.Each share is granted one vote per open seat.How many shares must you control if you want to guarantee your election to the board assuming no one else votes for you?
A)24,000
B)23,999
C)20,001
D)20,000
E)24,001

Question

Quizplus · Accepted Answer

In cumulative voting, to guarantee a seat, you need more than 1/(number of seats + 1) of the total votes. With 5 seats, you need more than 1/6 of the votes. 1/6 of 120,000 is 20,000, so you need 20,001 shares to guarantee a seat.

There Are Five Seats on the Board of Directors of Atlas