Statutory Voting Clarification

If you have 100 shares and 5 open board seats…

You can apply 100 to each seat right?

How is it a benefit to evenly apply 100 votes to each seat?

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Hi @Matthew - great question!

Statutory voting structures benefit larger investors, not necessarily because of anything related to the statutory systems. Cumulative voting structures allow smaller shareholders to “band together” and apply all their votes to one board seat. This cannot be done with statutory voting structures, which is why it’s a benefit to larger shareholders. Basically, the large shareholders don’t need to worry as much about smaller shareholders exercising leverage.

Hopefully that makes sense! Let me know if you have any additional questions.