A Study On Cumulative Voting System Of Company Law

Cumulative voting system is a voting system beyond direct or non-cumulative voting system, different from the latter, which only applies to shareholders' election of directors. Cumulative voting system does not contravene "one share, one vote" principle because it centralizes the shareholder's voting right. Although there is the possibility of the instance that minority shareholders overwhelm majority shareholders, the qualification for the election of director candidates is based on the quantities of the votes which are decided by the capital voting right. So, cumulative voting system is just a beneficial supplement rather than exception to majority rule. The application of cumulative voting system in practice can improve shareholder democracy and company management and which can also offer effective protection for the minority shareholders' interest. On the other hand, many disadvantages are also disposed in the practice of the stem by this aspect. Moreover, there is only a concept provision of cumulative voting system in Corporation Law of our country, so it's difficult to exercise the system in practice. It's necessary to make a further perfection on legislations.The thesis consists of three chapters.The first chapter introduces a basic theory about cumulative voting system, which includes the concept, comparison with related concepts and history of cumulative voting system.The second chapter analyzes the application of cumulative voting system, which involves the scope and ways of the application, the function and disadvantage of the system in practice.The third chapter plays a key role in the thesis, which discusses China cumulative voting system's further perfection on the aspects of the system itself and the practice.