Legal analysis: cumulative voting system is one of the forms for shareholders to exercise their voting rights. At the company's election meeting, the voting right of each shareholder is the product of the number of shares with voting rights and the number of elected people. Voters can vote collectively or dispersedly. Whether it is the Company Law or other normative documents, the cumulative voting system is still arbitrary, that is, the law only makes a guiding provision and is not necessarily mandatory. Accordingly, the company can choose to stipulate or not stipulate the cumulative voting system in its articles of association, but only when the company writes this system into its articles of association or makes a resolution at the shareholders' meeting can this system really take effect. The introduction of cumulative voting system in China's company law plays an important role in improving corporate governance. As the decision-makers and executors of the company's daily affairs, company executives should pay more attention to this system. Article 3 of the corporate governance standards for listed companies in China should fully reflect the opinions of minority shareholders in the process of director election. The general meeting of shareholders should actively implement the cumulative voting system when electing directors. A listed company with a controlling shareholder holding more than 30% shares shall implement the cumulative voting system. A listed company adopting the cumulative voting system shall stipulate the detailed implementation rules in its articles of association. Therefore, for listed companies, if the shareholding ratio of their controlling shareholders reaches more than 30%, then the cumulative voting system should be stipulated in the articles of association.
Legal basis: Article 3 of the Guidelines for the Governance of Listed Companies should fully reflect the opinions of minority shareholders in the process of director election. The general meeting of shareholders should actively implement the cumulative voting system when electing directors. A listed company with a controlling shareholder holding more than 30% shares shall implement the cumulative voting system. A listed company adopting the cumulative voting system shall stipulate the detailed implementation rules in its articles of association. Therefore, for listed companies, if the shareholding ratio of their controlling shareholders reaches more than 30%, then the cumulative voting system should be stipulated in the articles of association.