Coase Corp. has 10,000,000 outstanding shares. There are 11 directors on the firm's board. The Becker family owns 2,300,000 shares of Coase Corp. How many directors can the Becker family be assured of electing by themselves if Coase Corp. uses majority voting?
A) 0
B) 1
C) 2
D) 3

Question

Quizplus · Accepted Answer

Under majority voting, each director is elected by a majority of the votes cast. The Becker family owns 23% of the shares, which is not enough to guarantee the election of any directors by themselves, as they would need more than 50% of the votes for each director.