How does it help the minorities? All are equally benefitted because every the value of share gets magnified under cumulative voting. i.e if there are 3 directors to be chosen and the shareholder has 100 shares, he has 300 votes, and can vote for one or proportionately as he desires. So can all - be it minority or majority…
I am talking about Schweser example. Now, A holder of 30% of the firm’s shares could chose 3 of 10 directors with cuulative voting but could not elect any director under statutory voting??? Can anyone explain the meaning?