ABSTRACT
In determining whether free-riding can be overcome, the first two factors – the decisiveness of large individual institutional holdings and the possibility of concerted action – will apply differently depending on the voting systems adopted at the shareholders’ meeting. As discussed earlier, Chinese listed companies can adopt a usual one-share, one-vote system, class voting system, or cumulative voting system, determined by certain circumstances stipulated by legislation. The sections below will explain how these factors play out in different voting systems.
