You own 40% of the stock of a company that has ten directors on its board. How much representation can you get on the board if the company has cumulative voting?

By: Answerout


Here’s the answer for  You own 40% of the stock of a company that has ten directors on its board. How much representation can you get on the board if the company has cumulative voting? Below is the solution for the Question

You own 40% of the stock of a company that has ten directors on its board. How much representation can you get on the board if the company has cumulative voting?

A. With cumulative voting you are able to get proportional representation by putting all of your votes toward 4 directors, allowing you to elect representatives to 4 seats (40% of ten seats) on the board.

B. With cumulative voting you vote on each director individually, and without a majority of the shares you cannot ensure that your representative will win any of the elections (you could lose 60% to 40% in each of the ten individual elections).

Give your Answers in the Comments. You can Discuss the answers and Concepts in the Comments.

This Answer is Given by Professionals and Practitioners. All the Questions on Answerout are answered correctly and if by mistake there’s any kind of error our experts solve it ASAP. The Question – You own 40% of the stock of a company that has ten directors on its board. How much representation can you get on the board if the company has cumulative voting? is answered correct. 100% Assured. All the Questions and Answers on Answerout are available for free forever.

More About the Exam

The exams keep changing and so does the order of questions in these exams. You can keep your knowledge up to date by searching seperate questions because the correct answers obviously never changes. We Support the Community of Learners. We are always here just send us query on our contact us page. We’ll be sure to reply.

All other types of exams and their respective questions will be available very soon. As we are currently updating all the content on this site. We’ve been in this industry from a long time with different Names. We try to provide best Certification Answers i,e., Regularly Updated.

The Certification Exam Answers for these MNCs are tough to Crack but We’ve got your back. You will find all other latest exam answers. Updated Regularly. Get the Answers and learn from the best.

We at Letsfindoubt make sure to provide the Best Possible content but We’ve made it Very Clear that you should use this for Learning and Practice. Never use the Answers provided as cheat sheet but learn all the Answers Properly. All The very Best for your Exam. we’re Always here in case you want any assistance.

BookMark This site for Easy access and use in future.

comments
leave comment

Captcha

4 + 7 = ?