Question: Mr Michaels controls proxies for 40 000 of the 75 000 outstanding

Mr. Michaels controls proxies for 40,000 of the 75,000 outstanding shares of Northern Airlines. Mr. Baker heads a dissident group that controls the remaining 35,000 shares. There are seven board members to be elected and cumulative voting rules apply. Michaels does not understand cumulative voting and plans to cast 100,000 of his 280,000 (40,000 × 7) votes for his brother-in-law, Scott. His remaining votes will be spread evenly between three other candidates.
How many directors can Baker elect if Michaels acts as described in the preceding paragraph? Use logical numerical analysis rather than a set formula to answer the question. Baker has 245,000 votes (35,000 × 7).

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  • CreatedOctober 14, 2014
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