The direct voting system means that when shareholders exercise their voting rights at the shareholders' meeting, they can only vote directly on a resolution with the votes of their share representatives at a time, which embodies the concept of equal rights and obligations of major shareholders in controlling the company.
Cumulative voting system refers to a voting system in which each share held by shareholders has the same voting rights as the total number of directors to be elected when more than two directors are elected at the shareholders' meeting. Shareholders can vote for one person by centralized voting with all voting rights, or they can vote for several people by decentralized voting, and then decide the voting rights of directors in turn according to the number of votes.
As a traditional voting method, direct voting is extremely simple and easy to operate, but its shortcomings are also obvious, that is, the major shareholders include all seats and the minor shareholders get nothing. It is precisely because the direct voting system itself is unreasonable that the cumulative voting system is popular. It can be seen that the cumulative voting system is a modification of the direct voting system, and its purpose is to increase the chances of minority shareholders being elected as directors of the company without making the board of directors a "centralized" shareholder.