What type of voting system allows shareholders to allocate their votes among multiple candidates for the board of directors?

Cumulative voting is a system that enables shareholders to distribute their votes across multiple candidates when electing members to the board of directors. In this voting format, shareholders are granted a number of votes equal to the number of shares they own multiplied by the number of candidates up for election. This allows shareholders to concentrate their votes on one or more candidates instead of being limited to one vote per candidate. This method promotes a more equitable representation of minority shareholders, as they can focus their voting power on candidates they prefer, increasing their chances of influencing the election results.

The other voting systems mentioned do not provide this flexibility. Statutory voting typically requires shareholders to cast one vote per share for each candidate, limiting their ability to concentrate votes. Class voting pertains to scenarios where different classes of shares may vote separately on specific proposals and is not directly associated with electing directors. Proportional voting is a term that can refer to several systems that allocate representation based on the percentage of votes, but it does not specifically describe the method of distributing votes among board candidates as cumulative voting does.