Question

I'M StartUP Corp. issued and sold 2,500,000 common voting shares during its first public stock sale. What is the minimum number of shares needed to be able to elect a new director to the Board

Answer 1

Answer:

1,250,000 (1.25 million)

Explanation:

Given

Common Voting Shares = 2,500,000

First, we need to understand what common voting shares is.

Common voting shares are such that the ownership interest in a company and entitle their purchasers to a portion of the profits earned.

To be able to elect a new director to the Board, only ½ or 50% of the total Common voting shares is needed.

i.e.

Minimum number of shares = 50% of 2,500,000

Minimum number of shares = 1,250,000

Hence, the minimum number of shares required to be able to elect a new director to the Board is 1,250,000