Question

Carl Hubbell owns $\mathbf{6}\mathbf{,}\mathbf{001}$ shares of the Piston Corp. There are $\mathbf{6}\mathbf{,}\mathbf{001}$ seats on the company board of directors, and the company has a total of$\mathbf{}\mathbf{78}\mathbf{,}\mathbf{000}$ shares of stock outstanding. The Piston Corp. utilizes cumulative voting.

Can Mr. Hubbell elect himself to the board when the vote to elect $\mathbf{12}\mathbf{}$directors is held next week? (Use Formula $\mathbf{17}\mathbf{-}\mathbf{2}\mathbf{}$to determine if he can elect one director.)

Short answer

Yes, Mr. Hubbell can elect himself as the director of the company.

Step-by-step solution

Information provided in the question

Shares outstanding $=78,000$ shares

Total number of directors $=12$

Shares held by Mr. Hubbell $=6,001$ shares

Calculation of number of shares that can be elected by Mr. Hubbell.

The total number of directors that Mr. Hubbell can elect is $1$