The corporation’s shareholders are dissatisfied with these management decisions and a group is organizing to replace the board members with a vote at the next annual meeting. Assume there are 100,000 voting shares and elections for the 5 board positions are managed using cumulative voting. If there are only two voting groups, one supporting the board and one against, how many votes do the dissenters require to entirely replace the board? How would this change with a straight vote? Explain the trade-offs with these voting practices.

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Cumulative Voting vs Straight Voting for Board Replacement Scenario Dissatisfied shareholders want t... View the full answer