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 for three other candidates.

How many directors can Lueng elect if Hernandez acts as described above? Assume Mr. Lueng casts an equal number of votes for each open position.

Answer rating: 100% (QA)

In cumulative voting shareholders are allowed to allocate their votes to multiple candidates in a bo... View the full answer