What are the cumulative voting devices shareholder rights?

Certain rights of shareholders in a company are guaranteed. One of the most important is the right to vote for members of the Board of Directors and, in some cases, on other matters such as mergers or resolution. VotingVoting is performed either by statutory vote or cumulative voting devices. The method is referred to in the articles of the Constitution and cumulative voting devices sometimes by State law.Cumulative VotingWith, a shareholder can share dictates your vote between a grant or vote allows multiple administrators to his discretion.Statutory VotingStatutory only the number of votes (shares) for each position. It propagates uniformly among all candidates to vote shareholder. It is also known as vote properly designed voting.PurposeCumulative, representing minority shareholders to get with a smaller number of shares. Their voices on a single candidate allow minority shareholders to concentrate cumulative voting equipment provides minority shareholders who choose the ability, at least a Director of their choosing.ExampleIf Mr. Smith has 20 actions and there 3 positions of the Director, Mr. Smith 60 votes (number of shares multiplied by the number of posts) has. With cumulative voting equipment Mr. Smith could all 60 votes for a candidate or spread among the other candidates, it wants to use. Mr. Smith would through legal consultations, a maximum of 20 votes (one per share) authorized for each candidate.