There are three directors' seats up for election. If you own 1,000 shares of stock and you can cast 1,000 votes in each of the three elections, then the firm uses the voting procedure referred to as Cumulative Voting.
Cumulative voting gives the shareholders one vote for each share held times the number of directors being voted for. To allow minority shareholders to acquire representation on the board of directors
So,
You have 1000 shares
Votes obtained: 1000
Number of Directors up for election: 3
Hence,
Vote = Shares x No. Of Directors
Vote = Shares x No. Of Directors = 1000 x 3
Vote = Shares x No. Of Directors = 1000 x 3 = 3000
It helps the minority to be representative enough.
Cumulative Voting
https://brainly.com/question/28240584
#SPJ4
