Betty owns 100 shares of stock of the Flintstone Corporation. She sells her stock to Wilma and delivers to her: (1) her stock certificate for 100 shares and (2) a written, signed assignment of the 100 shares to Wilma. The assignment form printed on the back of the share certificate was left blank and was not signed. Wilma refuses to take the certificate and the assignment arguing that Betty has to fill in and sign the assignment form on the stock certificate to make the transfer of stock effective.

Who is correct? Why?

Wilma really wants to get her hands on these shares right away because she wants to have 100 votes in the upcoming election of three board of directors for Flintstone Corporation. Flintstone Corporation has issued a total of 5,000 shares.

In addition, how many votes will Wilma have under cumulative voting and straight voting?

Answer: No she is not correct.

Explanation:

No. Betty could have made the transfer in the manner requested by Wilma, but she was not required to do so, and the transfer is just as effective when made in the manner followed by her. There is really no difference for Betty or the corporation on which method she has decided on using. Therefore, Wilma cannot object to Betty's choice of method.

Wilma votes in cumulative and straight voting

Total shares = 5,000

Wilma shares = 100

1. Under straight voting Wilma can cast a vote of 100 for each member of the three man board of directors because her shares of 100 gives her the right of one share to a vote this makes it 300 votes for straight voting

2. Under cumulative voting system Wilma can decide to give her total votes of 300 to a single director or board member. Because in cumulative she is not bounded by rules she decides how she wants to give her votes.