Explain how many directors can baker elect if michaels acts, Ask an Expert

Management Studies

Q. Mr. Michaels controls proxies for 38,000 of the 70,000 outstalsoing shares of Northern Airlines. Mr. Baker heads a dissident group which controls the remaining 32,000 shares. There are seven board members to be elected also cumulative voting rules apply. Michaels does not understand cumulative voting also plans to cast 100,000 of his 266,000 (38,000 × 7) votes for his brother-in-law, Scott. His remaining votes will be spread evenly for three other candidates.

Explain how many directors can Baker elect if Michaels acts as described above? Use logical numerical analysis rather than a set formula to answer the question. Baker has 224,000 votes (32,000 × 7).

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Business Management, Management Studies

Category:- Business Management
Reference No.:- M9365825

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