Cumulative Voting Law and Legal Definition

Cumulative voting is a method by which a shareholder may multiply his/her number of shares by the number of open directorships and cast the total for a single candidate or select a few candidates. In other words, it is a voting system that gives minority shareholders more power by allowing them to cast all their votes for a single candidate, contrary to regular or statutory voting in which shareholders must vote for a different candidate for each available seat. For example, if an owner of has 200 shares, a total of 1,200 votes can be cast if six positions are there for a vote. According to cumulative voting, these 1,200 votes can be cast for a single director, or can be split between two directors, or can be allocated equally among all six directors.