Shareholder Voting For Directors
Description
How to fill out Results Of Voting For Directors At Three Previous Stockholders Meetings?
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FAQ
Companies have one of two voting structures for the BOD: statutory or cumulative. Each stockholder gains one vote for every share they own, but the way votes are cast depends on the company's voting structure. Stockholders can vote on various items, from the BOD to dilutive actions (covered later).
Shareholders typically vote for the board of directors at the annual meeting of shareholders. In most cases, shareholders can vote in person at the meeting or by proxy, which allows them to appoint someone else to vote on their behalf. Some companies may also allow shareholders to vote by mail or online.
There are two main ways to elect directors: by plurality vote or majority vote. A "plurality vote" means that the winning candidate only needs to get more votes than a competing candidate. If a director runs unopposed, he or she only needs one vote to be elected, so an "against" vote is meaningless.
Shareholders typically have the right to vote in elections for the board of directors and on proposed operational alterations such as shifts of corporate aims and goals or fundamental structural changes.
Shareholder have the right to vote on corporate actions, policies, board members, and other issues, often at the company's annual shareholder meeting.
