Tuesday, May 9, 2023

What is the voting process for shareholders when it comes to making decisions?

What is the voting process for shareholders when it comes to making decisions?

Shareholders vote for or against proposed resolutions at general meetings (official meetings of the shareholders) or in writing (written resolution).

A resolution is a formal proposition) presented for consideration. The resolution is 'approved' when the required majority of votes are cast in favour, and the result is legally binding.

Ordinary or special resolutions can be used by shareholders to make decisions. Ordinary resolutions require a simple majority (i.e. more than 50% of the votes) to pass, whereas special resolutions require a 75% majority vote.

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