Cumulative voting

Cumulative voting allows shareholders to vote all of their shares for just a few or one candidate for a board of directors position or some other shareholder action. A shareholder is normally granted one vote for each board of director position. By using cumulative voting to concentrate their votes with a small number of candidates, minority shareholders can obtain representation on a board of directors. For example, a shareholder owns 100 shares and there are six board of director seats currently up for election. The shareholder is entitled to cast 100 votes for each of the board of director positions, or could use cumulative voting to concentrate all 600 votes on a single board position.