You are in charge of writing a blog where you have to explain the difference bet

Question

You are in charge of writing a blog where you have to explain the difference between electing the board of directors for a company, assuming that shareholders have the right to vote cumulatively or to vote straight. Assume that 3 directors are to be elected; and currently there are 10 shareholders, where A has 100 shares, B has 75 shares, C has 60 shares, D has 30 shares and E has 25 shares and F, G, H, I and J has 2 share each (for a total of 300 shares).

What % of votes or how many votes are needed to be elected first to the board with cumulative voting?

What % of votes or how many votes are needed to be elected first to the board with straight voting?

Explanation / Answer

Cummulative voting (no of votes)

The formula to determine the number of shares necessary to elect a majority of directors is:

(S*X)/(D+1)

where

X = no of directors needed

S = total number of shares at the meeting

D = no of directors up for election

=(300*3)/11=82 shares

For straight voting: (300/10)+1

=31

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