Cumulative Voting

AAA

DEFINITION of 'Cumulative Voting'

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'.

INVESTOPEDIA EXPLAINS '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. Arrow's Impossibility Theorem

    A social-choice paradox illustrating the impossibility of having ...
  2. Voting Shares

    Shares that give the stockholder the right to vote on matters ...
  3. Statutory Voting

    A corporate voting procedure in which each shareholder is entitled ...
  4. Class A Shares

    A classification of common stock that may be accompanied by more ...
  5. Strategic Management

    The management of an organization’s resources in order to achieve ...
  6. Performance Management

    The management of employees, departments, and organizations to ...
Related Articles
  1. Introduction To Convertible Preferred ...
    Bonds & Fixed Income

    Introduction To Convertible Preferred ...

  2. Proxy Voting Gives Fund Shareholders ...
    Mutual Funds & ETFs

    Proxy Voting Gives Fund Shareholders ...

  3. Knowing Your Rights As A Shareholder
    Investing Basics

    Knowing Your Rights As A Shareholder

  4. What Owning A Stock Actually Means
    Investing Basics

    What Owning A Stock Actually Means

comments powered by Disqus
Hot Definitions
  1. Ghosting

    An illegal practice whereby two or more market makers collectively attempt to influence and change the price of a stock. ...
  2. Elasticity

    A measure of a variable's sensitivity to a change in another variable. In economics, elasticity refers the degree to which ...
  3. Tangible Common Equity - TCE

    A measure of a company's capital, which is used to evaluate a financial institution's ability to deal with potential losses. ...
  4. Yield To Maturity (YTM)

    The rate of return anticipated on a bond if held until the maturity date. YTM is considered a long-term bond yield expressed ...
  5. Net Present Value Of Growth Opportunities - NPVGO

    A calculation of the net present value of all future cash flows involved with an additional acquisition, or potential acquisition. ...
  6. Gresham's Law

    A monetary principle stating that "bad money drives out good." In currency valuation, Gresham's Law states that if a new ...
Trading Center