Cumulative Voting

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Cumulative Voting

A method of election of the board of directors used by corporations whereby a stockholder may cast as many votes for directors as he or she has shares of stock, multiplied by the number of directors to be elected.

A plan used for the election of members to the lower house of the Illinois legislature by which voters, each of whom is given three votes, may cast all of the votes for one candidate or allocate them among two or three candidates.

The purpose of cumulative voting is to facilitate the representation of minority stockholders on the board. The stockholder may cast all of his or her votes for one or more, but not all, of the directors on the ballot, which therefore promotes representation of small shareholders. Cumulative voting is mandatory under the corporate laws of some states and is allowed in most states.

cumulative voting

n. in corporations, a system of voting by shareholders for directors in which the shareholder can multiply his voting shares by the number of candidates and vote them all for one person for director. This is intended to give minority shareholders a chance to elect at least one director whom they favor. For example, there are five directors to be elected, and 10,000 shares issued, a shareholder with 1,000 shares could vote 5,000 for his candidate rather than being limited to 1,000 for each of five candidates, always outvoted by shareholders with 1,001 or more shares.

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.
Guinier advocates the use of cumulative voting as a remedy, on the theory that cumulative voting better respects the preferences of all voters by permitting more effective expression of preference intensity.
Assessing the advantages and disadvantages of cumulative voting in CS and NCS companies is outside the scope of this Article.
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 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.
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.
The potential of full representation can be glimpsed by looking at Illinois' experience with cumulative voting using three-seat districts.
Communities and the nation should look for alternatives to winner-takes-all voting, Guinier said, such as cumulative voting and making Election Day a national holiday, to ensure democracy and promote citizen participation.