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voting rights,directors election

Galaxy Corporation is holding a stockholders' meeting next month. Mr. Starr is the president of the company and has the support of the existing board of directors. All nine members of the board are up for reelection. Art Levine is a dissident stockholder. He controls proxies for 30,001 shares. Mr. Starr and his friends on the board control 50,001 shares. Other stockholders, whose loyalties are unknown, will be voting the remaining 19,998 shares. The company uses cumulative voting.

a. How many directors can Mr. Levine be sure of electing?
b. How many directors can Mr. Starr and his friends be sure of electing?
c. How many directors could Mr. Levine elect if he obtains all the proxies for the uncommitted votes? (Uneven values must be rounded down to the nearest whole number regardless of the amount.)

Solution Preview

Please find enclosed the answer sheet in excel format.

Total number of shares 100000

Levine controls 30001
Mr.Starr controls 50001 49999
other stock holders 19998
Total number of ...

Solution Summary

The answer contains the voting rights of the stock holders , procedure of selection of directors by the stockholders to the Board.