How does cumulative voting differ from regular voting in the election of directors, as explained in the chapter?

Cumulative voting allows shareholders to allocate their total votes in any manner they choose among candidates for the board of directors, while regular voting requires them to distribute their votes evenly across the candidates. This flexibility in cumulative voting can enhance representation for minority shareholders.

In cumulative voting, a shareholder calculates their total votes by multiplying the number of shares they own by the number of directors to be elected. They can then cast all their votes for one candidate or distribute them among several candidates as they prefer. This contrasts with regular voting, where shareholders can only cast a fixed number of votes per candidate, limiting their ability to concentrate votes on a single candidate. Cumulative voting thus provides a greater opportunity for minority shareholders to gain representation on the board.