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Question: Chocolates, Inc. is holding a stockholders meeting next month. Mr. Wonka is the president of the company and has the support of the existing board of directors. All 13 members of the board are up for reelection. Mr. Slugsworth is a dissident stockholder. He controls proxies for 340,001 shares.
Mr. Wonka and his friends on the board control 440,001 shares. Other stockholders, whose loyalties are unknown, will be voting the remaining 240,998 shares. The company uses cumulative voting.
a. How many directors can Mr. Slugsworth be sure of electing?
b. How many directors can Mr. Wonka and his friends be sure of electing?
c. How many directors could Mr. Slugsworth elect if he obtains all the proxies for the uncommitted votes? (Uneven values must be rounded down to the nearest whole number regardless of the amount.) Will he control the board?
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