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.

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.
Intensity of preference by itself cannot explain cumulative voting's advantages for minority voters.
Assessing the advantages and disadvantages of cumulative voting in CS and NCS companies is outside the scope of this Article.
"One Person, Seven Votes: The Cumulative Voting Experience in Chilton County, Alabama." In Affirmative Action and Representation: Shaw v.
Five stockholder proposals presented at the meeting were each defeated by the following approximate vote percentages: Cumulative voting, 63 percent against; Independent director as chairman of the board, 86 percent against; Labeling products of cloning or genetic engineering, 92 percent against; Sustainability report, 60 percent against; Report on controlled-atmosphere killing, 91 percent against.
Cumulative Voting. Cumulative voting would achieve proportional election outcomes without ranked ballots, hand counts, or multiple rounds of counting.
Cumulative voting is a way, some believe, to achieve fairer minority representation.
On occasion, there might even be such strict procedures as cumulative voting, (11) which would give minorities a presence in the governing legislature (including the nearly whites-only Senate).
There's cumulative voting, in which you cast multiple votes, choosing either to divide them among different candidates or pile them all on one name.
On Saturday, May 4, 2002, cumulative voting was used to elect three members to the school board in the Amarillo Independent School District (ISD).
In 90 percent of Thai companies, minority shareholders have no way of influencing the composition of the board (for instance, through cumulative voting (2) or a board seat dedicated to their interests) and depend entirely on the goodwill of controlling shareholders.
Another alternative, cumulative voting, under which voters apportion their votes among candidates, has earned enthusiastic support from an Illinois task force chaired by former GOP Governor Jim Edgar and former Democratic Representative (and federal judge) Abner Mikva.