i’m so confused
so in S voting 500 votes 3 seats = 500 to each seat ?
on C voting 500votes 3seats = 1500 an way you want ? ?
The investor receives votes for each open position; their total votes are always (shares * positions). The difference between statutory and cumulative structure is how the votes can be applied.
Here’s the relevant part of the Board of Directors chapter (link) for your review:
Statutory
Allows the stockholder to apply only the amount of votes they have to each BOD position being voted on. Statutory voting structures are more beneficial for larger stockholders.An investor owns 100 shares of stock with a statutory voting structure. There are 3 open board positions.
The investor has 300 votes
- 100 shares x 3 open positions
- The investor can only apply up to 100 votes per open position
Cumulative
Allows the stockholder to apply the total amount of votes they have to any BOD position being voted on. Cumulative voting structures are more beneficial for small stockholders.
An investor owns 100 shares of stock with a cumulative voting structure. There are 3 open board positions.
The investor has 300 votes
- 100 shares x 3 open positions
- The investor can apply up to 300 votes in any manner