Hot Bagels Inc. has been experiencing declining earnings but has just announced a 50 percent salary increase for its top executives. A dissident group of stockholders wants to oust the exisiting board of directors. There are currently 14 directors and 32,500 shares of stock outstanding. Mr. Thomas, the president of the company, has the full support of the existing board. The dissident stockholders control proxies for 15,001 shares. Mr. Thomas is worried about losing his job. A. Under cumulative voting procedures, how many directors can the dissident stockholders elect with the proxies they now hold? How many directors could they elect under majority rule with these proxies? B. How many shares (or proxies) are needed to elect nine directors under cumulative voting?
Hot Bagels Inc. has been experiencing declining earnings but has just announced a 50 percent salary increase for its top executives. A dissident group of stockholders wants to oust the exisiting board of directors. There are currently 14 directors and 32,500 shares of stock outstanding. Mr. Thomas, the president of the company, has the full support of the existing board. The dissident stockholders control proxies for 15,001 shares. Mr. Thomas is worried about losing his job.
A. Under cumulative voting procedures, how many directors can the dissident stockholders elect with the proxies they now hold? How many directors could they elect under majority rule with these proxies?
B. How many shares (or proxies) are needed to elect nine directors under cumulative voting?
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