The Meter is Running
The Habitat Article Archive includes the full text of all of our
magazine articles dating back to 2002. You can view 3 articles per
month for free. (Repeat views of the same article don’t count
against your monthly limit.)
To read more, purchase a print subscription or a daily or yearly All-Access Pass
and get unlimited access to the Archive. Prices start at 1.95.
You've reached your free article limit for this month.
To read this article and gain unlimited access to the Habitat Article
Archive, which includes the full text of all our magazine articles
dating back to 2002, purchase an All-Access Pass.
41 legal experts on game-changing laws, rules, and cases.
AUTHORAndrew Freedland, Shareholder, Anderson Kil P.C.l
PAGE #p. 27
BCL SEC. 618
A cumulative-voting election permits voters in an election for more than one seat to put more than one vote on a preferred candidate. Those voters in the minority can concentrate votes and increase their chances of obtaining representation on the board.
"Cumulative voting is designed so that a small group of shareholders, or one shareholder who has a large number of votes, can get representation on the board. In order for this type of voting to be legal, it needs to be in your certificate of incorporation. Because 100 shares can balloon to 500 votes, you should take steps to make sure that every shareholder knows the number of shares he or she can vote when they arrive at an annual meeting that will have a contested election."
To read the full lecture, visit: http://bit.ly/AFreedland