Turner Corporation is holding a meeting of its shareholders to elect directors to its board. The corporation permits shareholders to cumulate their votes. A group of shareholders are looking to elect a director who would represent their concerns on the board. If 400 shares are being voted and four directors are to be elected, how many shares does the group need to elect its preferred candidate as director?

Question

Quizplus · Accepted Answer

The formula for determining the number of shares, X, required to elect one director under cumulative voting is X = (S/D + 1) + 1 where S is the number of shares voting and D is the total number of directors to be elected. On substituting the values for S(400) and D(4), X is equal to 81. The group needs 81 shares to elect its preferred candidate as director.

Turner Corporation Is Holding a Meeting of Its Shareholders to Elect