Cumulative voting + inspection rights

Question 1

What does cumulative voting apply to?

Answer 1

ONLY election of directors, not fundamental corporate changes

Question 2

Purpose of cumulative voting

Answer 2

Protects shareholders’ right to elect directors

Question 3

Must corporations permit cumulative voting?

Answer 3

NO, but may establish in articles

Question 4

Cumulative voting calculation

Answer 4

Shareholders are given a number of votes representing NUMBER OF SHARES THEY OWN multiplied by NUMBER OF OPEN POSITIONS FOR VOTE

Question 5

Can cumulative votes be spread?

Answer 5

YES, OR can put all on one position

Question 6

When do shareholder inspection rights attach?

Answer 6

May inspect corporation’s RECORDS or PERSON

through AGENT

as long as shareholder STATES PROPER PURPOSE

Question 7

Definition of shareholder proper purpose for inspection?

Answer 7

Related to shareholder’s FINANCIAL INTEREST in corporation

Question 8

Improper purpose for shareholder inspection?

Answer 8

To harass corporate officers