When all the capital stock has been issued and
more working capital is needed, it may be desirable
for the stockholders to return part of their stock
to the treasury to be sold for cash required for im-
mediate use. Treasury stock is the name usually
applied to any part of the capital stock which is so
returned by the stockholders to be sold for the pur-
pose of raising additional working capital.
145. Voting. — Each stockholder has one vote for
each share of stock which he owns, and a majority
vote of the stockholders is necessary for the election
of officers.
In some companies cumulative voting is provided
for. Under this plan a stockholder may cast one
vote on each question for each share of stock which he
holds. If he prefers not to vote on any proposition,
he saves his vote for some other question, thus dou-
bling his vote on that question. In this way minority
stockholders may unite on an important proposition
and outvote the majority.
