Question

Mr. Meyers wishes to know how many shares are necessary to elect 6 directors out of 14 directors up for election in the Austin Power Company. There are 74,000 shares outstanding.

Answer 1

Answer: 29,601 shares

Step-by-step explanation:

When calculating the number of shares required to elect a certain number of directors given the shares outstanding, use the formula;

Shares required = ((Number of directors required)*(Total number of shares outstanding) / (Total number of directors + 1)) + 1

= (6 * 74,000) / ( 14 + 1) + 1

=( 444,000/15) + 1

= 29,600 + 1

= 29,601 shares are needed to elect 6 directors