What are the main types of voting mechanisms for general meetings of shareholders? What are the advantages of the cumulative voting system

There are direct voting system and cumulative voting system

Direct voting system means that when exercising the right to vote at the shareholders' meeting, for a certain resolution, the shareholders can only cast the number of votes represented by the shares held by them at one time directly on these resolutions, which reflects the concept of reciprocal rights and obligations of a company that is controlled by the major shareholders.

The cumulative voting system refers to the voting system whereby, in the election of two or more directors at a general meeting of shareholders, each share held by a shareholder has a number of votes equal to the total number of directors to be elected, and the shareholders may either use all of their votes to vote centrally to elect one person, or to spread out their votes to elect a number of people, and decide on the directors to be elected in turn according to the number of votes they receive.

As a traditional voting method, the direct voting system is extremely simple and easy to operate, but its shortcomings are also obvious, that is, the majority of shareholders include all the seats, minority shareholders get nothing. It is because of the irrationality of the direct voting system itself, the cumulative voting system is very popular. It can be seen that the cumulative voting system is a direct voting system of a modification of its purpose is to be able to increase the small and medium-sized shareholders of the candidates elected to the board of directors of the company's chances, rather than make the board of directors to become the major shareholders of the "one-word hall".