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The number of shares currently in the hands of shareholders is the same as the number of shares question content area bottom part 1

a. proposed by the board of directors.
b. authorized.
c. issued.
d. outstanding.

User Mohsen Ali
by
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1 Answer

1 vote

Final answer:

To affect a managerial change in the Darkroom Windowshade Company, over 50% of the voting shares must approve, necessitating at least 50,001 votes. As Investors 1 and 2 own a combined 38,000 shares, they require additional shareholders to reach a majority. They have significant influence but still need support from others for full control.

Step-by-step explanation:

The topic in question deals with the concept of shareholders and stock ownership within a public company. Shareholders are individuals or entities that own at least some shares of stock in a firm. When it comes to corporate governance, the shareholders exercise their powers through voting rights where the number of votes is typically proportional to the number of shares owned. To change a company's top management, a majority of the voting shares must be in favor of the change.

Considering the Darkroom Windowshade Company with 100,000 shares of stock outstanding, one would need over 50% of the shares to vote for a change in top management. That is, they would need at least 50,001 votes. Investor 1 and Investor 2 together own 20,000 + 18,000 = 38,000 shares. They alone cannot ensure a change as they do not exceed the 50% threshold. However, with the support of either Investor 3 or a combination of other investors who can bring the total to over 50,001, they can indeed effect a change. Therefore, the minimum number of investors needed to vote for a management change would depend on the specific investors' shareholdings being consolidated for the voting process.

If Investors 1 and 2 vote together, they can influence the company significantly but cannot be certain of always getting their way unless they form a coalition with enough shareholders to exceed the 50,001 votes required.

User Aisha
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