Answer and Explanation:
1. If the company uses cumulative voting, I will be able represented by 2 directors on the board because I own 20% of the stock of the company. Since there are 10 seats (for 10 directors) on the board, I will be represented by: (20 ÷ 100) × 10 = 2 directors.
2. If the company uses straight voting, then I shall be entitled to vote for only one candidate per each of the 10 seats for the positions of board of directors. However, the number of seats I will be represented by will depend on the winner for each seat or position of director. In straight voting, if someone else owns a higher stock than me, the person can easily defeat the people I would vote for, and control the entire 10 seats on the board, thus leaving me with no representation (seats or directors).
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