cumulative voting

Cumulative Voting

The procedure of voting for a company's directors, where each shareholder is entitled one vote per share times the number of directors to be elected. This is sometimes known as proportional voting.

Notes:

For example, if you owned 100 shares and there are 3 directors to be elected then you would have 300 votes. This is advantageous for individual investors because they can apply all their votes towards one person.

See also: Statutory Voting, Voting Shares

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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.

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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.