Question

If sherman owns 300 shares in a company with cumulative voting and the most votes he can cast for himself in the next board election is 1200 votes how many board positions are open?

Answer 1

Solution

In cumulative voting each the number of votes each shareholder gets is total number of positions* number of shares with shareholder.Now it is the wish of shareholder to distribute the votes among the positions or cast all votes to one position

In this case the number of shares with Sherman is 300 and if he gives all the votes to himself then he can give 1200 votes.This shows that the number of board positions is 1200/300

= 4 positions

Thus he can give all 1200 votes to himself