Define: Cumulative Voting

Cumulative Voting
Cumulative Voting
Quick Summary of Cumulative Voting

Cumulative voting is a method used in corporate governance and elections where shareholders or voters can allocate multiple votes to one or more candidates or options. Instead of casting one vote per share or per person, shareholders or voters can accumulate their votes and cast them all for a single candidate or distribute them among multiple candidates. This system allows minority shareholders or voters to have a greater impact on the outcome by concentrating their votes on specific candidates or issues. Cumulative voting is often used to promote diversity and representation in corporate boards, political elections, and other decision-making processes.

What is the dictionary definition of Cumulative Voting?
Dictionary Definition of 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.
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This glossary post was last updated: 28th March, 2024.

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