Since each of Smith's candidates received 15 votes to only 10 for Doe's candidates, the Smith candidates would be elected. With cumulative voting, each shareholder could divide his or her votes in any way he or she pleases. If Doe casts all her 30 votes for one candidate, mathematically she is assured of that candidate's election. No matter how Smith divides her votes she cannot have three candidates all having more votes than Doe's one. In a small corporation, increased shareholder involvement in management functions may be desirable, and cumulative voting is one system for achieving this.
Cumulative voting is most effective the larger the number of places to be filled on the board.
Thus one way for the effects of cumulative voting to be diluted is for only one or two directors to be scheduled for election at one time. A share certificate is a piece of paper that evidences a shareholder's interest in a corporation. It may be a simple typewritten instrument containing the vital information regarding the interest it represents, including the name of the corporation, the number of shares represented by the certificate, who owns them, the class of shares, and its par value. The corporate certificate may also be a printed or engraved document. Blank share certificates, with space for appropriate information to be filled in, may be purchased at business stationary and legal supply stores.