Cumulative Voting System. Companies Act

Since the adoption into the Illinois Constitution in 1870, the history of cumulative voting has been more than 100 years in America, and the legislation attitude for cumulative voting in America has affected many countries and areas. China amended the Corporation Law in 2005 and stimulated the cumulative voting. The application of cumulative voting in China has no such abundant experience that in America and only one article of relevant law stipulates the cumulative voting in China. The special operation and relevant principle are absent in Chinese law. The theory problem in practical operation and the operation principle for the problems may arise from the practices of cumulative voting have many cases and reviews in America. So the research and analysis of cumulative voting in America will be useful for the comprehension of cumulative voting and for the reference of the legislation and practice in China. The Article mainly introduces the cumulative voting in America and advances opinions for the legislation in China. The Article has five parts:The first parts introduces the basic contents of cumulative voting, discusses its definition and origin, analyses the reasons for its occurrence in America, discusses its advantages and disadvantages.The second part analyses the effectiveness problem of cumulative voting in the application process, which is the situations under which the cumulative voting will be regarded as valid. This part analyses the basic principle for discerning the effectiveness of cumulative voting. The part also introduces the principle for discerning the effectiveness of cumulative voting under the compulsive and arbitrary stipulation.The third part analyses the procedure problem in the exercise of cumulative voting, mainly introduces the voting principle of cumulative voting and the principle for changing voting method in voting process and analyses the calculation method of cumulative voting.The fourth part analyses the elusion method of cumulative voting, and introduces the popular ways for the elusion of cumulative voting in practices. The part also discusses the principle for the removal of cumulative voting by AOA and the popular ways and disposal principles for the reduction of the director number and later dismissal.The fifth part introduces the stipulations of cumulative voting in China, and advances relevant opinions for improving the problems on the basis of American experience.