Cumulative voting

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Cumulative voting

A system of voting for directors of a corporation in which shareholder's total number of votes is equal to the number of shares held times the number of candidates.

Cumulative Voting

In electing members of a board of directors, a system where common shareholders have one vote per share multiplied by the number of directors to be elected. Cumulative voting allows shareholders to apply all votes to one person or to divide them up between candidates. For example, if a person owns a single share and there are five empty seats on the board, that person has five votes.

cumulative voting

A type of corporate voting right in which a stockholder receives one vote per owned share times the number of directors' positions up for election. The stockholder may allocate votes among the different positions as he or she wishes. For example, an owner of 200 shares is permitted a total of 1,200 votes if six positions are to be voted on. These 1,200 votes may be cast for a single director, may be split between two directors, or may be allocated equally among all six directors. Cumulative voting, making it easier for smaller interest groups to be represented, is required by some states. Compare majority voting.

Cumulative voting.

With this method of voting for a corporation's board of directors, you may cast the total number of votes you're entitled to any way you choose. For example, you can either split your votes equally among the nominees, or you can cast all of them for a single candidate.

Generally, you receive one vote for each share of company stock you own times the number of directors to be elected.

Cumulative voting is designed to give individual stockholders greater influence in shaping the board. They can designate all their votes for a single candidate who represents their interests instead of spreading their votes equally among the candidates, as is the case with statutory voting.