Cumulative Voting Legal Meaning and Definition

Here is a simplified definition of the legal term Cumulative Voting.

Cumulative Voting (noun)

Cumulative Voting is a voting process used in corporate elections, particularly those involving the board of directors. In Cumulative Voting, each shareholder is given a total number of votes that equals the number of shares they hold, times the number of board seats up for election. This means if a shareholder owns 10 shares, and there are 5 board seats available, they would have 50 votes. They can choose to distribute these votes as they wish, either all on one candidate, or spread across several.

This method provides a way for minority shareholders to have more influence and potentially secure representation on the board, as they can concentrate all their votes on a single candidate.