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 ?
At-large cumulative voting makes it much more difficult to effectuate negative preferences in voting.
Moreover, in an NCS firm, cumulative voting may impede a challenger's ability to quickly replace the incumbent board by giving minority shareholders (who may be aligned with the incumbents) the ability to elect some board members.
Voting rights scholar Lani Guinier and Supreme Court Justice Clarence Thomas have promoted cumulative voting as a color-blind means of fair minority representation.
For minorities seeking to elect someone from their community to the board, cumulative voting certainly was a success.
If the rights of minority shareholders are to be strengthened, it will also be essential to implement new procedures, such as cumulative voting.
Abner Mikva, the former Congressman and federal judge who got his political start in Chicago with cumulative voting and three-seat districts, has observed that this system "helped us synthesize some of our differences, made us realize that even though we were different from the downstaters, different from the suburbanites, we had a lot in common that held us together as a single state.
More specifically, it examines the impact of the percentage of stock owned by managers, employees, and institutional investors on the level of support for three popular shareholder proposals: to repeal classified boards, to redeem or require a shareholder vote on "poison pills," and to adopt cumulative voting (See Table 1 for description of proposals).
For example, in a double-member district under cumulative voting, voters can cast their two votes as follows: twice for one candidate, once each for two candidates, once for one candidate only, or abstain.
In 1995, the Chicago Tribune editorialized in support of cumulative voting's return, noting that "Many partisans and political independents have looked back wistfully at the era of cumulative voting.
8) Nevertheless, cumulative voting schemes permit the same number of whites, Ku Klux Klan members, plumbers, and Brooklyn Dodger fans to elect the "authentic"(9) representatives of their choice.
The three types of proportional representation allowed by the McKinney bill--preference voting, cumulative voting, and limited voting--also offer something for proponents of third parties and independent politics.
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.