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Example

The threshold needed to win is 3334 votes (10,000/3 + 1 vote) 

 

Round 1 The first choice votes are counted. Candidate A has reached the threshold and so is declared the first winner. There is still one more seat to be filled.
Round 2 Candidate A has more votes than the threshold – a surplus of 666 votes. The ballots that have Candidate A as their first choice are redistributed to the second choice candidate on each of those ballots. All 4,000 ballots are transferred, but at a fraction of a vote (666/4000 or .1665) so that only the 666 surplus votes are transferred in total.

Candidate C is the second choice on 3,000 of the 4,000 ballots and so 499.5 votes are transferred to Candidate C. Candidate D is the second choice on 1,000 of the 4,000 ballots and so 166.5 votes are transferred to Candidate D.

Round 3 No other candidate has yet reached the threshold and so another round of transfers occurs. Candidate D is the candidate with the fewest votes and is eliminated.

The votes for Candidate D are redistributed to the two remaining candidates based on the next preferences indicated on the voters’ ballots – 116.5 go to Candidate B and 950 to Candidate C. A total of 100 voters did not mark a next preference and those ballots are ‘exhausted’.

Candidate C has reached the threshold and is declared the second winner.