Cumulative Voting

Cumulative voting is the procedure followed when electing a company's directors. Typically, each shareholder is entitled to one vote per share multiplied by the number of directors to be elected. This is a process sometimes known as proportional voting. Cumulative voting is advantageous for individual investors because they can apply all of their votes to one candidate. Cumulative voting is a process company's undergo when they are electing a new director or board of directors. The shareholder can vote proportionally to the number of shares they hold. The shareholder can split the votes between multiple candidates or one, as they see fit.


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