Perm University Herald. Juridical Sciences. 2018. Issue 2 (40)

Title: INSTITUTION OF CUMULATIVE VOTING IN RUSSIAN LAW
Authors:

A. V. Gabov, The Institute of Legislation and Comparative Law under the Government of the Russian Federation

This email address is being protected from spambots. You need JavaScript enabled to view it.
ORCID: 0000-0003-3661-9174 ResearcherID: Q-9357-2017
Articles of «Scopus» & «Web of Science»:       10.17072/1995-4190-2017-38-385-399 
Requisites: Gabov A. V. Institut kumulyativnogo golosovaniya v rossiyskom prave [Institution of Cumulative Voting in Russian Law]. Vestnik Permskogo Universiteta. Juridicheskie Nauki – Perm University Herald. Juridical Sciences. 2018. Issue 40. Pp. 186–224. (In Russ.). DOI: 10.17072/1995-4190-2018-40-186-224
DOI: 10.17072/1995-4190-2018-40-186-224
Annotation:

Introduction: cumulative voting is mostly associated with the legislation on joint-stock companies. Initially, cumulative voting appeared in our law for electing some management bodies in joint-stock companies. However, the scope of its application has currently expanded. It is used for the formation of certain bodies of limited liability companies and also to govern the meeting of creditors in insolvency. Meanwhile, the bulk of studies on cumulative voting (which are actually not that big in number) still focus on the problems of such voting in joint-stock companies. The use of cumulative voting in other organizational structures requires a more thorough approach and broader view of this institution. Methods: general scientific methods (dialectic, analysis and synthesis, abstraction and concretization) and specific scientific ones (comparative legal, technical legal, legal dogmatic). Results: the article analyzes the history of the institution, the purpose of cumulative voting, the main problems associated with using this type of voting.

Keywords: cumulative voting; corporation; board of directors; joint-stock company; limited liability company; bankruptcy; corporate governance; meeting of creditors; voting bulletin
  download the full-version article
References: 1. Black B., Kraakman R., Tarasova A. Kommen¬tariy Federal'nogo zakona "Ob aktsionernykh obshchestvakh" [Commentary to the Federal Law "On Joint-Stock Companies"]. Moscow, 1999. 700 p. (In Russ.).
2. Gabov A. V. Drobnye aktsii v rossiyskom prave [Fractional Shares In Russian Law]. Zhurnal dlya aktsionerov – Magazine for Shareholders. 2003. Issue 7. Pp. 35–43. (In Russ.).
3. Gabov A. V., Zabitov K. S. Rol' Konstitutsi-onnogo Suda v zashchite prav minoritarnykh aktsionerov [The Role of the Constitutional Court in Protecting the Rights of Minority Shareholders]. Zakon – ZAKON. 2012. Issue 1. Pp. 108–110. (In Russ.).
4. Gil'cher M.E. Ocherki kitayskogo aktsioner-nogo prava [Essays on Chinese Company Law]. Izvestiya yuridicheskogo fakul'teta. Vys¬shaya shkola v Kharbine – Memoirs of the Faculty of Law in Harbin. Higher School in Harbin. Vol. 1. Harbin, 1925. 214 p. (In Russ.).
5. Glushetskiy A. Kumulyativnoe golosovanie kak sredstvo vospolneniya nedostatka korporativ¬nykh prav pri formirovanii kollegial'nykh organov khozyaystvennykh obshchestv [Cumu¬lative Voting as a Mean to Compensate the Insufficiency of Corporate Rights in the For¬mation of Collegial Bodies of Economic Entities]. Khozyaystvo i pravo – Business and Law. 2011. Issue 3. Pp. 29–36. (In Russ.).
6. Glushetskiy A. Forma byulletenya dlya kumu¬lyativnogo golosovaniya i pravo na obzha¬lovanie resheniy obshchego sobraniya [The Form of the Bulletin for Cumulative Voting and the Right to Appeal against the Decisions of the General Meeting]. Khozyaystvo i pravo – Bu¬siness and Law. 2014. Issue 3. Pp. 66–73. (In Russ.).
7. Zhuchenko A. A., Pugachev A. N. Opredelenie itogov golosovaniya na sobranii aktsionerov [Determining Voting Results at the Meeting of Shareholders]. Yurist – Jurist. 2003. Issue 2. Pp. 3–6. (In Russ.).
8. Ionin L. G. Parad men'shinstv [The Parade of Minorities]. Moscow, St. Petersburg, 2014. 176 p. (In Russ.).
9. Kaverina T. V. Organy upravleniya aktsioner¬nogo obshchestva [Joint-Stock Company Go¬verning Bodies]. Aktual'nyye problemy grazh¬danskogo prava: Sbornik statey. Vyp. 7; pod red. O. Yu. Shilokhvosta [Current Problems of Civil Law: Collection of Articles. Issue 7; ed. by O. Yu. Shilokhvost]. Moscow, 2003. (In Russ.).
10. Kalashnikov G. Kumulyativnoe golosovanie v aktsionernykh obshchestvakh [Cumulative Vo¬ting in Joint-Stock Companies]. Rynok tsennykh bumag – Securities Market. 2004. Issue 10. Pp. 66–68. (In Russ.).
11. Kopylov D. G. Kumulyativnoe golosovanie: Obzor inostrannogo zakonodatel'stva i prob¬lemy primeneniya polozheniy "Ob aktsioner¬nykh obshchestvakh" o kumulyativnom go¬losovanii [Cumulative Voting: Review of Fo¬reign Legislation and Problems of Application of Provisions of the Federal Law "On Joint-Stock Companies" on Cumulative Voting]. Advokat – Lawyer. 2012. Issue 11. Pp. 69–79. (In Russ.).
12. Lakeman E., Lambert J. D. Issledovanie ma-zhoritarnoy i proportsional'noy izbiratel'nykh system [A Study of Majority and Proportional Electoral Systems]. Moscow, 1958. 366 p. (In Russ.).
13. Mikhaylova A. N. Pravovye aspekty reguliro¬vaniya otnosheniy s drobnymi aktsiyami [Legal Aspects of Regulation of Relations with Frac¬tional Shares]. Gosudarstvo i pravo – State and Law. 2003. Issue 9. Pp. 100–104. (In Russ.).
14. Molotnikov A. E. Obshchee sobranie aktsione¬rov: novye trebovaniya [General Meeting of Shareholders: New Requirements]. Sovremen¬noe pravo – Modern Law. 2002. Issue 9. Pp. 7–11. (In Russ.).
15. Osipenko O. V. Informatsionnye prava aktsio¬nerov: novelly korporativnogo zakonodatel'stva [Information Rights of Shareholders: Novelties of Corporate Legislation]. Imushchestvennye otnosheniya v Rossiyskoy Federatsii – Property Relations in the Russian Federation. Moscow, 2018. Issue 2. Pp. 82–89. (In Russ.).
16. Pavlova K. P. Izbranie kak pravovoy mekha-nizm obrazovaniya soveta direktorov (nablyu¬datel'nogo soveta) aktsionernogo obshchestva: poryadok, osobennosti, problemy [Election as a Legal Mechanism of Forming the Board of Directors (Supervisory Board) of the Joint-Stock Company: Order, Features, Issues]. Grazhdanskoe pravo – Civil Law. 2013. Issue 1. Pp. 42–46. (In Russ.).
17. Pavlodskiy E. A., Zaytsev O. R. Pravovoe polo¬zhenie kreditora v dele o bankrotstve [Legal Status of the Creditor in Bankruptcy]. Zhurnal rossiyskogo prava – Journal of Russian Law. 2004. Issue 7. Pp. 30–47. (In Russ.).
18. Povarov Yu.S. Voprosy golosa na obshchem sobranii aktsionerov s ispol'zovaniem byul-leteney dlya golosovaniya [Problems of Voting by Ballots at the General Meeting of Shareholders]. Zakony Rossii. Opyt. Analiz. Praktika – Laws of Russia: Experience, Analysis, Practice. 2013. Issue 12. Pp. 26–32. (In Russ.).
19. Porotikov D. Problemy formirovaniya soveta direktorov v aktsionernykh obshchestvakh [Problems of Formation of the Board of Directors of Joint-Stock Companies]. Kor-porativnyy yurist – Corporate Lawyer. 2010. Issue 9. Pp. 24–27. (In Russ.).
20. S.l.v.n.v I. Chto takoe bol'shinstvo, ego otno¬shenie k men'shinstvu voobshche i ko vsyakomu chlenu men'shinstva v osobennosti? [What is the Majority, Its Relation to the Minority in General and to any Member of the Minority in Particular?]. Yuridicheskiy vestnik. God tretiy. Knizhka sed'maya. Oktyabr' – Legal Bulletin. Year Three. Book Seven. October. Moscow, 1871. Pp. 40–47. (In Russ.).
21. Sukhanov E. A. Zakon ob obshchestvakh s ogranichennoy otvetstvennost'yu [Law on Li¬mited Liability Companies]. Khozyaystvo i pravo – Business and Law. 1998. Issue 5. Pp. 38–47. (In Russ.).
22. Shitkina I. S. Pravovoe regulirovanie korpora¬tivnykh prav i obyazannostey [Legal Regulation of Corporate Rights and Duties]. Khozyaystvo i pravo – Business and Law. 2011. Issue 1. Appendix. (In Russ.).
23. Cahn A., Donald C. D. Comparative Company Law. Cambridge University Press, 2010. 927 p. (In Eng.).
24. Capaul M. Corporate Governance in Latin America. Office of the Chief Economist, Latin America and the Caribbean, World Bank, 2003. 33 p. Available at: http://web.worldbank.org/
archive/website00894A/WEB/PDF/CORPOR-2.PDF. (In Eng.).
25. Chen Yinghui, Du Julan. Regulatory Reform of Cumulative Voting in Corporate China: Who Were Elected and Its Impacts (January 27, 2015). Conference Paper. Asian Finance Asso¬ciation (AsianFA), 2015. 64 p. (In Eng.).
26. Co-operative Identity, Values & Principles. Available at: https://ica.coop/en/whats-co-op/
co-operative-identity-values-principles (acces¬sed 05.03.2018). (In Eng.).
27. Coyle J. F. Altering Rules, Cumulative Voting, and Venture Capital. Utah Law Re-view. Vol. 2016. No. 4. Article 2. Pp. 595–610. (In Eng.).
28. Davies L., Worthington S. Gower and Davies' Principles of Modern Company Law. Sweet & Maxwell, Thomson Reuters, 2012. 1343 p. (In Eng.).
29. Davies L., Hopt K. J. Boards in Europe – Accountability and Convergence. American Journal of Comparative Law. 2013. No. 61. Pp. 301–375. (In Eng.).
30. Dickerson R. W. V., Howard John L., Getz L. Proposals for a New Business Corporations Law for Canada. Vol. I. Commentary. Ottawa: Information Canada, 1971. 175 p. (In Eng.).
31. Eisenberg M. A. Corporations and Other Bu-siness Organizations. Cases and Materials. Eighth edition – unabridged. New York: Foundation Press, 2000. 1421 p. (In Eng.).
32. French D., Mayson S., Ryan C. Company Law. 2016–2017 Edition. Oxford University Press, 2016. 767 p. (In Eng.).
33. Girvin S. D., Frisby S., Hudson A. Charles-worth's Company Law. Sweet & Maxwell, Thomson Reuters, 2010. 836 p. (In Eng.).
34. Gordon J. N. Institutions as Relational Inves-tors: A New Look at Cumulative Voting. Columbia Law Review. 1994. No. 1. Pp. 124–194. (In Eng.).
35. Huffer K. Aktiengesetz. 12th ed. Munich, 2016. 2297 p. (In Germ.).
36. Hurst R. Thomas, Gregory A. William. Cases and Materials on Corporations. Cincinnati; Ohio: Anderson Publishing Co., 1999. 910 p. (In Eng.).
37. Joffe V., Drake D., Richardson G., Lightman D., Collingwood T. Minority Shareholders: Law, Practice and Procedure. 5th ed. Oxford Uni¬versity Press, 2015. 613 p. (In Eng.).
38. Fernandez J. W., DelPino A., Dan J.L., Diaz-Granados R. Corporate Caveat Emptor: Mino¬rity Shareholder Rights in Mexico, Chile, Brazil, Venezuela and Argentina. University of Miami Inter-American Law Review. 2015. Vol. 32. Issue 2(2001). Pp. 157–217. Available at: https://
repository.law.miami.edu/cgi/viewcontent.cgi?
article=1236&context=umialr. (In Eng.).
39. Kosmin L. QC, Roberts C. Company Meetings and Resolutions. Law, Practice, and Procedure. Second edition. Oxford University Press, 2013. 569 p. (In Eng.).
40. Lin Yu-Hsin, Chang Yun-chien. Does Manda¬ting Cumulative Voting Weaken Controlling Shareholders? A Difference-in-Differences Approach (June 23, 2017). 52 International Review of Law and Economics. 2017. Pp. 111–123. Available at: https://papers.ssrn.com/sol3/
papers.cfm?abstract_id=2816508. (In Eng.).
41. Luca Enriques, Henry Hansmann, Reiner Kraakman. The Basic Governance Structure: Minority Shareholders and Non Shareholder Constituencies. The Anatomy of Corporate Law. A Comparative and Functional Approach. Second Edition. Oxford University Press, 2009. Pp. 73–96. (In Eng.).
42. Marchetti P., Siciliano G., Ventoruzzo M. Dissenting Directors (October 1, 2016). Avai¬lable at: https://papers.ssrn.com/sol3/papers.cf
m?abstract_id=2854768. (In Eng.).
43. Mills L. The Mathematics of Cumulative Vo-ting. Duke Law Journal. 1968. Vol. 28. Pp. 28–43. (In Eng.).
44. Mortimer S. Company Directors. Duties, Liabi¬lities, and Remedies. Third Edition. Oxford University Press, 2017. 1206 p. (In Eng.).
45. OECD Corporate Governance Factbook 2017. Available at: http://www.oecd.org/daf/ca/Cor¬porate-Governance-Factbook.pdf. (In Eng.).
46. OECD Survey of Corporate Governance Frameworks in Asia. OECD 2017. Available at: http://www.oecd.org/daf/ca/OECD-Survey-Corporate-Governance-Frameworks-Asia.pdf. (In Eng.).
47. O'Kane M. The New Saudi Companies Law. Andalus Publishing, 2016. 104 p. (In Eng.).
48. Pacuit E. Voting Methods. The Stanford Ency¬clopedia of Philosophy; ed. by Edward N. Zalta. Winter 2012 ed. 2012. Available at: https://
plato.stanford.edu/entries/voting-methods/ (ac¬cessed 11.02.2018). (In Eng.).
49. Pildes R. H., Donoghue K. A. Cumulative
Voting in the United States. University of Chi¬cago Legal Forum. 1995. Issue 1. Article 10. Pp. 241–313. (In Eng.).
50. Pittman W. H. Nonvoting Shares in Missouri. Missouri Law Review. 1961. Vol. 26. Issue 1. Pp. 117–150. Available at: http://scholarship.
law.missouri.edu/cgi/viewcontent.cgi?article=1774&context=mlr (accessed 15.08.2017). (In Eng.).
51. Reform Priorities in Asia: Taking Corporate Governance to a Higher Level. OECD 2011. Available at: http://www.oecd.org/daf/ca/4980
1431.pdf. (In Eng.).
52. Sealy L., Worthington S. Sealy's Cases and Materials in Company Law. Oxford University Press, 2010. 790 p. (In Eng.).
53. Stephan E. A. Cumulative Voting and Classi-fied Boards: Some Reflections on Wolfson v. Avery. Notre Dame Lawyer. A Quarterly Law Review. 1956. Pp. 351–380. (In Eng.).
54. Tholin R. One Person, Three Votes; Illinois' 110-Year Experiment with Cumulative Vo-ting. 118 p. Available at: https://wesscholar.
wesleyan.edu/cgi/viewcontent.cgi?article=1815&context=etd_hon_theses. (In Eng.).
55. United States Proxy Voting Guidelines. Bench¬mark Policy Recommendations. Institutional Shareholder Services, 2018. Available at: https://
www.issgovernance.com/file/policy/active/ameri¬cas/US-Voting-Guidelines.pdf. (In Eng.).
56. United States Summary Proxy Voting Guide-lines. 2017 Benchmark Policy. Institutional Shareholder Services, 2016. Available at: https://www.issgovernance.com/file/policy/2017-us-summary-voting-guidelines.pdf. (In Eng.).
57. Ventoruzzo M. Empowering Shareholders in Directors' Elections: A Revolution in the Making (February 24, 2010). Available at: https://papers.ssrn.com/sol3/papers.cfm?abstract
_id=1558467. (In Eng.).
58. Walcott E. Alternatives to Plurality Voting: Cumulative Voting (posted on May 1, 2017). Available at: http://msue.anr.msu.edu/news/
alternatives_to_plurality_voting_cumulative_vo¬ting. (In Eng.).
Received: 17.02.2018
Financing: ---
The Perm State University
614068, Perm, street Bukireva, 15 (Faculty of Law), +7 (342) 2 396 275
vesturn@yandex.ru
ISSN 1995-4190 ISSN (eng.) 2618-8104
ISSN (online) 2658-7106
DOI 10.17072/1995-4190
(с) Editorial board, 2010
The magazine is registered in Federal Agency of supervision in sphere of communication and mass communications.
The certificate on registration of mass media ПИ № ФС77-33087 from September, 5th, 2008
The certificate on reregistration of mass media ПИ № ФС77-53189 from Marth, 14th, 2013

The magazine is included in List ВАК and in the Russian index of scientific citing

The founder & Publisher: the State educational institution of the higher training
“The Perm State University”.
Publishing 4 times a year