| One of the purposes of the cumulative voting system is to protect the interestsof minority shareholders, and to prevent the company from being manipulated by themajor shareholders. Cumulative voting system of equality has a positive effect to theshareholders of the company, and can improve corporate governance. Because of theunreasonable ownership structure and imperfect corporate governance, theunreasonable events against the interests of minority shareholders often occurs,which lead to damage the legitimate interests of the minority shareholders.Companies use cumulative voting system in order to allow minority candidates onbehalf of minority shareholders into the company’s board of directors and board ofsupervisors in the election of directors and supervisors. The Chinese Company Lawis the first time in the form of a national law stipulating of the cumulative votingsystem, which concludes the belief that our legislators to implement the concept ofequality, to protect the interests of minority shareholders and to improve corporategovernance.Present investigations of cumulative voting system are divided into the legallevel and practical level visits, and legal aspects can be subdivided into thelegislative and judicial levels. For the company practical level, I examine thecumulative voting systems of some listed companies implementation details, andthen come to the results of our company on the practice of cumulative voting statusquo and the legislative model. In order to better analyze the legislative model ofcumulative voting system in China，I specifically examines the legislative model ofrepresentative countries and regions. There draws a result that the cumulative votingsystem is appropriate to the actual situation of China. Specific systems of cumulativevoting system are based on the company’s governance structure of the legal basis andthe external environment analysis is based the shareholders inequality in the China’s existing equity model. Then I summary the problems of the specific system and theexternal environment and give suggestions for solving these problems. |
