The Study Of Effectiveness Of Cumulative Voting In The Listing Financial Enterprises

Cumulative voting system has developed more than100years in the world. Butlook the rules of law established in China claims no compulsory force. With regardingto the basic principles for corporate governance of listed companies in2002, fewcorporations comply with it. Cumulative voting in the newly company law is also asuggestion, and small group of companies apply it. It is necessary for to understand iton the whole, but it also important for us to remember the execution level of thesystem. In this thesis, the subjects of the study are listed financial companies, whichhave much better corporate governance status than other industries. So we will findout the practical condition in them, and bring out reform plan of establishing thesystem.Through the research of the equity structure and the power balance withshareholder structure in this44listing financial enterprises. We can find out there are20listing financial enterprises companies’ first large shareholders having more than30%stocks, which is less than the low one. Base on the power balance withshareholder structure，there are24companies having the ratio below1, so the highlever companies is less more. In all, our study objects are spread widely, which canhelp us increase our study extension. Having the general description of the44listedfinancial enterprises about implement cumulative voting system， there are11companies having no provisions in their regulations,14companies have theprovisions, and only8companies have abstract provisions.We can draw a lesson from it that the44listing financial enterprises, there aremany problems in their cumulative voting system, including having no circumstanceof implement, less of perfect legislation and system, minority shareholders have noenough passion on it. In order to solve these problems, we may need to furtherstrengthen implementation of foundation of cumulative voting system, and strengthenlegislation, development of a supporting system, provide technical support andencourage the participation of minority shareholders.