A corporation has 30 shareholders holding 2900 shares. The founder of the company retains 50 % of the companies shares. The remaining shares are equally divided among his 29 grandchildren.
By the company's articles of incorporation, the voting weight for each partner is set by the number of shares they own. The by-laws also state that the quota for any decision affecting the by-laws themselves must be 1933 votes.
a. How many votes does each grandchild hold?
b. What is the voting weight for grandpa?
c. What is the most appropriate characterization for grandpa? ? dummy dictator veto power grumpy old man none of the above
d. What is the appropriate characterization for the grandkids? ? dummy dictator veto power none of the above
Remember for 30 shareholders there are possible coalitions. Do not attempt to calculate the following! Just think about the possibilities
To find the answers to the questions, we need to determine the number of shares held by each grandchild and the number of shares held by the founder (grandpa). Let's start by calculating the number of shares held by each grandchild:
1. Total shares: 2900
2. Shares owned by grandpa (founder): 50% of 2900 = 1450 shares
3. Remaining shares for the grandchildren: 2900 - 1450 = 1450 shares
Since the remaining shares are equally divided among the 29 grandchildren, we can calculate the number of shares each grandchild holds by dividing the total shares by the number of grandchildren:
Number of shares held by each grandchild = Remaining shares / Number of grandchildren
Number of shares held by each grandchild = 1450 / 29
a. To find the number of votes each grandchild holds, we need to consider the by-laws, which state that voting weight is determined by the number of shares owned. Therefore, each grandchild will have the same number of votes as the number of shares they hold.
b. Grandpa (founder) holds 1450 shares, so his voting weight will be equal to the number of shares he owns.
c. The appropriate characterization for grandpa depends on his voting power. Since he holds 1450 shares, which is significantly more than the required voting quota of 1933 votes, we can classify him as having veto power. He has the ability to block any decision affecting the by-laws since his votes alone exceed the required quota.
d. The appropriate characterization for the grandkids also depends on their voting power. Since their shares are equally divided among them, each grandchild will have the same number of votes. We cannot determine whether they have veto power or not without knowing the number of shares each grandchild holds.
Please note that the calculation for the number of votes each grandchild holds depends on the information provided about the distribution of shares among them. Without this detail, we cannot provide an exact answer, but we can explain the process to find the answer.