Question

The corporation’s shareholders are dissatisfied with these management decisions and a group is organizing to replace the board members with a vote at the next annual meeting. Assume there are 100,000 voting shares and elections for the 5 board positions are managed using cumulative voting. If there are only two voting groups, one supporting the board and one against, how many votes do the dissenters require to entirely replace the board? How would this change with a straight vote? Explain the trade-offs with these voting practices.

Answer 1

According to the voting rights there are two types of voting :

cummilative voting	straight voting
In this voting the shareholder can cast their vote the total no of votes for any nominated candidate in whatever share he or she desires ex:we have two director seats to elected. X&B for seat 1, Y&c for seat 2. suppose the voter has 400 votes they can give their votes X- 200& Y-200 or the voter give their all votes to eithr X or Y.	In this voting each director can only be voted upto 100 votes only share holder cannot have the right to allocate no of shares to the board members ex:in this seates to X&Y are to be same and not to increase more than 100 votes the voter can give their all votes either X or Y