Week 12 - Voting on Resolutions Flashcards
1
Q
What are the two ways of voting?
A
- a show of hands
- a poll
2
Q
On a show of hands:
A
- each member has one vote regardless of number of shares held
- shareholders vote by raising their hand for or against a resolution
3
Q
On a poll:
A
- shareholders vote in proportion to their shareholdings
- contains minimum conditions when shareholders can demand vote by poll
4
Q
What happens to any votes not cast?
A
They are disregarded
5
Q
How does a written resolution work?
A
Proposed and sent to every eligible voting person (every eligible shareholder) - can be hard copy or email/website
6
Q
How is a written resolution passed?
A
A written resolution is passed by a simple majority if it is passed by members representing a simple majority of the total voting rights of eligible members
7
Q
Who can use written resolutions and what is the exception?
A
Private companies only UNLESS you are needing to remove a director or auditor before the expiration date of their period in office
