If six directors are to be elected under statutory voting, a stockholder owning 100 shares of stock could cast:

If six directors are to be elected under statutory voting, a stockholder owning 100 shares of stock could cast:

• A. 100 votes for each director
• B. 600 votes to one director
• C. 600 votes spread among six directors in any manner chosen
• D. 1, 2, or 3

Answer: (A)

In a statutory voting system, each stockholder is afforded a number of votes equal to the number of shares they own for each director position to be filled. Therefore, in this scenario, a stockholder who owns 100 shares has the capacity to cast 100 votes for each of the six directors being elected. This means the stockholder can choose to place all 100 votes for one director, or distribute them among the candidates, but the key aspect is that the stockholder is limited to 100 votes per director. This makes the idea of casting 600 votes for one director incorrect, as each share only provides a single vote per candidate. Furthermore, while spreading the 600 votes among directors is theoretically possible, such distribution would not align with statutory voting, where the limit is defined per candidate rather than cumulatively across multiple candidates. Therefore, understanding the framework of statutory voting is crucial to grasp the limits set on how many votes can be cast for each director according to the shares held.

In a statutory voting system, each stockholder is afforded a number of votes equal to the number of shares they own for each director position to be filled. Therefore, in this scenario, a stockholder who owns 100 shares has the capacity to cast 100 votes for each of the six directors being elected. This means the stockholder can choose to place all 100 votes for one director, or distribute them among the candidates, but the key aspect is that the stockholder is limited to 100 votes per director.

This makes the idea of casting 600 votes for one director incorrect, as each share only provides a single vote per candidate. Furthermore, while spreading the 600 votes among directors is theoretically possible, such distribution would not align with statutory voting, where the limit is defined per candidate rather than cumulatively across multiple candidates. Therefore, understanding the framework of statutory voting is crucial to grasp the limits set on how many votes can be cast for each director according to the shares held.