Cumulative voting

Also found in: Dictionary, Legal, Wikipedia.

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.

References in periodicals archive ?
Of the 77 percent of common shares voted, 92 percent voted in favor of eliminating pre-emptive rights and 88 percent voted in favor of eliminating cumulative voting.
and is concerned that cumulative voting could lead to the election of
For minorities seeking to elect someone from their community to the board, cumulative voting certainly was a success.
Recent studies of the impact of classified boards and restriction of cumulative voting also indicate that the market reacts negatively to these provisions, particularly to those adopted during the takeover wave of the 1980s (Mahoney and Mahoney, 1995; Mahoney et al.
Yet, though cumulative voting has attractions, it also suffers from serious flaws compared to choice voting, an open-party list system, or MMP.
They not only want to guide you in dividend policy, but are ready to discuss or argue about your policies on diversity, the environment, advertising media, global politics, cumulative voting, and your salary.
A proposal to amend Fifth Third's Articles of Incorporation and Code of Regulations in order to implement a majority voting standard for uncontested election of directors unless cumulative voting is in effect.
One amendment would eliminate cumulative voting in director elections and the other amendment would declassify the Board.
Instant Runoffs, Proportional Representation, and Cumulative Voting
Called preference voting, it is a more proportional form of nonpartisan voting than Guinier's preferred cumulative voting.
The advantage of cumulative voting," she said, "is.
Shareholders also rejected a shareholder proposal to implement cumulative voting in the election of directors and approved a shareholder proposal requesting the company's Board of Directors to adopt a policy requiring an independent, non-executive chairman of the Board.