Cumulative Voting

What is 'Cumulative Voting'

Cumulative voting is the procedure of voting for a company's directors; each shareholder is entitled one vote per share times the number of directors to be elected.

This is sometimes known as 'proportional voting'.

BREAKING DOWN 'Cumulative Voting'

For example, if you owned 100 shares and there were three directors to be elected, you would have 300 votes. This is advantageous for individual investors because they can apply all of their votes toward one person.

RELATED TERMS
  1. Statutory Voting

    A corporate voting procedure in which each shareholder is entitled ...
  2. Voting Right

    The right of a stockholder to vote on matters of corporate policy ...
  3. Voting Shares

    Shares that give the stockholder the right to vote on matters ...
  4. Voting Trust

    A legal trust created to combine the voting power of shareholders. ...
  5. Proxy Vote

    A ballot cast by one person on behalf of another. One of the ...
  6. Contingent Voting Power

    A provision granting voting rights to preferred shareholders ...
Related Articles
  1. Professionals

    Voting

    As a common stockholder, you have the right to vote on the major issues facing the corporation. You are a part owner of the company and, as a result, you have a right to say how the company is ...
  2. Professionals

    Common Stock Benefits

    NASAA Series 65: Section 9 Common Stock Benefits. In this section voting rights and types of voting systems.
  3. Investing Basics

    Shareholders: Vote Your Proxy and Be Heard

    Voting shares, in person or via proxy ballot, is a right every shareholder should exercise. Here's why.
  4. Investing Basics

    What Is Tenure Voting?

    This stockholder voting structure, one of three types, has advantages and disadvantages. Here’s a look at the pros and cons of all three.
  5. Mutual Funds & ETFs

    Proxy Voting Gives Fund Shareholders A Say

    You have the right to take part in important company decisions - even if you cannot attend the meetings.
  6. Professionals

    Corporate Securities: Common Stock

    FINRA Series 6 Exam Study Guide - Corporate Securities: Common Stock. Summary of the rights and privileges enjoyed by the common stockholder such as stock certificate, limited liability, dividends, ...
  7. Professionals

    B. Corporate Time Line

    Authorized stock is the maximum number of shares that a company may sell to the investing public in an effort to raise cash to meet the organization’s goals. The number of authorized shares ...
  8. Mutual Funds & ETFs

    What Does Your Mutual Fund Say About You?

    How your fund votes on proxy issues will reveal whether it's acting in your best interest and according to your beliefs.
  9. Fundamental Analysis

    Ethical Investing: Investor Activism and Shareholder Advocacy

    By Amy Fontinelle For some people, buying stocks in companies, whose actions they support, isn't enough. Activist investors seek to directly change the practices of targeted companies. As Amy ...
  10. Entrepreneurship

    Keeping Control of Your Business After the IPO

    Taking a company public doesn't mean founders must completely give up calling the shots. Before the IPO, consider these tactics to keep control after it.
RELATED FAQS
  1. If I own a stock in a company, do I get a say in the company's operations?

    You don't get a direct say in a company's day-to-day operations, but, depending on whether you own voting or non-voting stock, ... Read Answer >>
  2. What can shareholders vote on?

    Understand the usual voting rights of common stock shareholders, along with the importance of shareholders exercising their ... Read Answer >>
  3. How do a corporation's shareholders influence its Board of Directors?

    Find out how shareholders can influence the activity of the members of the board of directors and even change official corporate ... Read Answer >>
  4. What happens to the voting rights on shares when the shares are used in a short sale ...

    The registered owner of the security, known as the holder of record, is the investor who retains voting rights. This means ... Read Answer >>
  5. What is the investor rights movement?

    The investor rights movement, also called shareholder activism, refers to the efforts of shareholders of publicly traded ... Read Answer >>
  6. Do convertible bonds have voting rights?

    Convertible bonds usually have no voting rights until they are converted. Even after conversion, they may not be granted ... Read Answer >>
Hot Definitions
  1. Law Of Demand

    A microeconomic law that states that, all other factors being equal, as the price of a good or service increases, consumer ...
  2. Cost Of Debt

    The effective rate that a company pays on its current debt. This can be measured in either before- or after-tax returns; ...
  3. Yield Curve

    A line that plots the interest rates, at a set point in time, of bonds having equal credit quality, but differing maturity ...
  4. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  5. Keynesian Economics

    An economic theory of total spending in the economy and its effects on output and inflation. Keynesian economics was developed ...
  6. Society for Worldwide Interbank Financial Telecommunications ...

    A member-owned cooperative that provides safe and secure financial transactions for its members. Established in 1973, the ...
Trading Center