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321_corp_voting_example_07

321_corp_voting_example_07 - Ben 40 Carl 40 Betty 40 Bert...

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Business Law II Spring, 2007 STRAIGHT V. CUMULATIVE VOTING Ajax, Inc. has three shareholders with the following holdings: Alice 100 shares Ben 30 shares Carl 10 shares Ajax has a four-person board of directors and the following people are up for election at the next annual meeting [initials indicate similar interest/clique]: Alice Ben Carl Andy Betty Alex Bert Aaron What is the result with straight voting ? Alice’s votes: Alice - 100 Andy - 100 Alex - 100 Aaron - 100 Ben and Carl together trying to elect even one director:
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Unformatted text preview: Ben - 40 Carl - 40 Betty - 40 Bert - 40 What is the result with cumulative voting? Alice’s 400 shares: Alice - 100 Andy - 100 Alex - 100 Aaron - 100 Ben & Carl’s 160 shares: Ben - 160 X = Y X N 1 +1 N + 1 X = number of shares needed to elect a given number of directors Y = total number of voting shares at meeting N 1 = number of directors desired to elect N = total number of directors to be elected...
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