On Cumulative Voting Rights System In China

Nowadays how to protect the minority shareholders' interest has increasingly become the focus of the legislature. This paper intents to introduce a new measure, cumulative voting, to realize this goal.This paper consists of four parts. The first part makes a general interpretation of the corporate governance, and introduces the proxy theory. Following are the board of directors and the transition of corporation's power from shareholders' meeting to board of directors.The second part consists of the origin of cumulative voting, the compare of two genealogy of law and the function and significance of cumulative voting.The third part of the paper is the necessary of the cumulative voting. The theories of protection of minority shareholders' interest, couple with the fact of security market, prove that it is necessary to establish this system.The last of this paper is about some concrete measure to establish this system. Author provides four piece of advice, hoping it will be useful to protect minority shareholders' interest and guarantee the healthy development of security market.