CHAPTER 14

Bwithcumulativevotingthedirectorsareelectedinorderofth

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Unformatted text preview: . Internet exercise; answers will vary. 10. a. Less valuable b. More valuable c. More valuable d. Less valuable Challenge Questions 1. a. For majority voting, you must own or otherwise control the votes of a simple majority of the shares outstanding, i.e., one­half plus one. Here, with 200,000 shares outstanding, you must control the votes of 100,001 shares. b. With cumulative voting, the directors are elected in order of the total number of votes each receives. With 200,000 shares outstanding and five directors to be elected, there will be a total of 1,000,000 votes cast. To ensure you can elect at least one director, you must ensure that someone else can elect at most four directors. That is, you must have enough votes so that, even if the others sp...
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This note was uploaded on 04/26/2013 for the course MATH 289Q taught by Professor Jamesbridgeman during the Fall '04 term at UConn.

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