Mr. Hernandez controls proxies for 40,000 of the 75,000 outstanding shares of Northern Airlines. Mr. Lueng heads

Question:

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

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Foundations Of Financial Management

ISBN: 9781264097623

18th Edition

Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen

Question Posted: