Question

In a board of directors election for five directors and straight voting, a majority group of shareholders will elect a. four directors. b. five directors. c. four or five depending on how the cumulative voters vote. d. the same proportional share of directors as their ownership share.

Answer 1

Answer: b. five directors

Explanation:

Straight voting refers to a voting convention where shareholders are allowed to cast a single vote towards each director seat for each share they own. This is in contrast to cumulative voting where a single shareholder can decide to cast all their votes to one director.

In such a convention therefore, the majority will elect all five seats because the majority that voted for each seat will decide which director will be elected.