Answered

IDNLearn.com: Your reliable source for finding expert answers. Ask anything and receive comprehensive, well-informed responses from our dedicated team of experts.

Danali Corporation has 2,500,000 shares of common stock outstanding. Danali has a 15-member board, and five will leave at the end of this year. There are nine candidates for these five open seats. The minority group of stockholders controls 45 percent ofthe shares, and the majority group controls the other 55 percent. How many voting shares would be needed to elect 3 directors

Sagot :

Tundexiidn

Answer:

3,125,501

Explanation:

No of directors seat desired = 5

Total number of voting share = 2,500,000 shares

Total number of directors to be elected = 3

We are using the cumulative voting approach to calculate how many voting shares would be needed to elect 3 directors:

Voting shares needed = [(Number of Directors desired * Total number of voting shares) / (Total number of directors to be elected + 1 )] + 1

Voting shares needed = [(5*2,500,000) / (3 + 1)] + 1

Voting shares needed = [12,500,000 / 4] + 1

Voting shares needed = 3,125,000 + 1

Voting shares needed = 3,125,001

So, the number of voting shares needed to elect 3 directors is 3,125,501.

We appreciate your contributions to this forum. Don't forget to check back for the latest answers. Keep asking, answering, and sharing useful information. Thank you for visiting IDNLearn.com. We’re here to provide clear and concise answers, so visit us again soon.