The Study Of Effectiveness Of Cumulative Voting In The Chinese Listed Company

As a voting mechanism,cumulative voting system is one of the most important ways for small and medium-sized shareholders to participate in corporate governance.Small shareholders can increase their chances to elect their interests spokesmen in company management.Cumulative voting was made as an imported product.At first,it did not attract the attention of the shareholders of the listed company.However,in recent years,the cumulative voting system has played a key role in the control of the control of listed companies.The functional value of the cumulative voting system is also increasingly prominent.This paper's analysis is mainly based on 145 listed companies which have the detailed rules for the implementation of the cumulative voting system on the Shanghai stock exchange and the specific case of the implementation of the cumulative voting system.Combined with the domestic laws and regulations,to find the problems of cumulative voting system in China's listed companies.The focus of this article is divided into the following sections:The first part,the author introduces the development trend of the cumulative voting system in different regions in foreign countries.The countries represented by the United States and Japan have undergone a process of evolution from strong to weak,and it is the mainstream trend in the world.However,there are also a few countries,such as Russia,which impose stricter regulations on the cumulative voting system.Such legislative experience is also worth learning and drawing lessons from.It is not difficult to see from the gradual rise of China's system from departmental regulations to the legal level of legislative attitudes.Due to the inadequate protection mechanism of small and medium shareholders at this stage,the cumulative voting system is still of great significance in our company's legal system and needs further attention and improvement.In the second part,I analyzed the specific cases of the implementation of the cumulative voting system and 145 companies with cumulative voting implementation rules and listed companies.The author found that in practice,the controlling shareholders of listed companies through many ways to decrease the function of cumulative voting system.such as restrict the act of small and medium shareholders in the articles of association,including restrictions of nomination,to reduce the number of candidates,to set unreasonable counting rules,These practices has greatly restricted the small shareholders' rights of cumulative voting.Therefore,to solve these problems,the author believes that the "Company Law" should detail the provisions of the cumulative voting system: for example,itis stipulated that an elected cumulative voting system,improvement of the nomination mechanism and the principle of election,election of the combined directorsand supervisors,etc.Meanwhile,small shareholders will also have a negative impact on the company because of their limitations,which deviates from the design intention of the cumulative voting system.Thus,we should improve the shareholding structure of the company and inspire the institutional investors to join the stock market.While protecting the rights of small shareholders,we should createa harmonious cultural atmosphere of equity and guide small shareholders to use their rights correctly and rationally.