Problem: Blue Moon Corporation has one million shares of common stock outstanding. In a typical annual election for the board of directors, shareholders representing 70 percent of the shares outstanding exersize their right to vote. The company has nine members on its board of directors, all of whom are elected annually.
1) If the company uses a majority voting procedure, how many votes are required to elect:
a) one director
b) two directors
c) a majority of the members of the board of directors
2) If the company uses a cumulative voting procedure, how many votes are required to elect:
a) one director
b) two directors
c) a majority of the majority of the board members