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Stockholder voting right allow shareholders of record in a company to vote on certain corporate actions, elect members to the board of directors, and approve issuing new securities or payment of dividends. Shareholders cast votes at a company's annual meeting.

Common stockholders have voting rights?preferred stockholders do not. Learn more about common and preferred stock.

A proxy can vote only in the principal's absence, not when the principal is present and voting. Where the authority conferred upon a proxy is limited to a designated or special purpose, a vote for another and different purpose is ineffective.

The Advantages of Voting Shares Voting shares provide its holders multiple benefits. Here is what these shares have to offer to you: Voting shares make you eligible for dividends in the form of bonus shares or cash payments. These shares allow you to participate in the decision-making process of the company.

Broker Vote For certain routine matters to be voted upon at shareholder meetings, if you don't vote by proxy or at the meeting in person, brokers may vote on your behalf at their discretion. These votes may also be called uninstructed or discretionary broker votes.

Proxy voting is a form of voting whereby a member of a decision-making body may delegate their voting power to a representative, to enable a vote in absence.

Voting Rights of Common Stock Ownership Some companies grant stockholders one vote per share, thus giving those shareholders with a greater investment in the company a greater say in corporate decision-making. Alternatively, each shareholder may have one vote, regardless of how many shares of company stock they own.

You may vote by filling out a paper proxy card if you are a registered owner or, if you are a beneficial owner, a voting instruction form. By phone. Most companies provide a telephone number in the proxy materials through which you can vote.

Proxy voting can be used in virtually any situation?approving budgets, selecting bylaws for special interest groups, deciding on policies within organizations, and even in annual meeting shareholder votings.

Company, at its own expense cannot invite to its member for appointing proxy. If invited, fine up to Rs. 50,000 will be imposed to every officers of the company who issues the invitation.