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Chapter 5: 6BP (page 567)

Carl Hubbell owns 6,001 shares of the Piston Corp. There are 6,001 seats on the company board of directors, and the company has a total of78,000 shares of stock outstanding. The Piston Corp. utilizes cumulative voting.

Can Mr. Hubbell elect himself to the board when the vote to elect 12directors is held next week? (Use Formula 17-2to determine if he can elect one director.)

Short Answer

Expert verified

Yes, Mr. Hubbell can elect himself as the director of the company.

Step by step solution

01

Information provided in the question

Shares outstanding =78,000 shares

Total number of directors =12

Shares held by Mr. Hubbell =6,001 shares

02

Calculation of number of shares that can be elected by Mr. Hubbell.

The total number of directors that Mr. Hubbell can elect is 1

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