Question

On January 1, 2022 the capital structure of the company was: Preferred shares, $1.50, non-cumulative 100,000 shares authorized, 60,000 shares issued and outstanding 51,500,000 Common shares, unlimited number authorized, 150,000 shares issued and outstanding

Answer 1

To change the company's top management, it would take six investors who collectively own 55,000 shares to vote in favor. If investors 1 and 2 agree to vote together, they will have significant voting power but not enough to guarantee that they will always get their way.

Step-by-step explanation:

The Darkroom Windowshade Company has 100,000 shares of stock outstanding, and several investors own different numbers of shares. To change the company's top management, we need to determine the minimum number of investors required to vote in favor. It would take six investors, specifically investors 1, 2, 3, 4, 5, and 6, who collectively own 55,000 shares, to vote to change the company's top management.

If investors 1 and 2 agree to vote together, they will have a total of 38,000 shares, which is not enough to guarantee that they will always get their way in how the company will be run.