Definition
Voting Shares refer to a class of shares that bestow upon their holders the power to vote on corporate matters at the annual general meeting (AGM) and any extraordinary meetings. Unlike their silent cousins, the [*debentures], which prefer to sit in the library sipping tea, voting shares are typically [*ordinary shares], fully engaging in the drama of corporate governance.
Key Characteristics
Voting shares are the megaphones of the stock market, giving shareholders a voice in the company’s choir. The articles of association, which are less about artistic collaboration and more about serious corporate rulebooks, spell out which shares get to sing and which do not.
Types of Votes
- Ordinary Resolutions: Just your average vote, needing a simple majority.
- Special Resolutions: These are the high notes, requiring a supermajority to pass.
Importance in Corporate Governance
Holding voting shares is like having a seat at the round table of corporate knights. These shareholders can sway decisions ranging from electing the board of directors to approving mergers or other significant policies. It’s not just about having power; it’s about having a say in charting the company’s course. This can turn a tide from sinking to swimming in the competitive corporate sea.
Related Terms
- Ordinary Shares: The commoners of the share world but with voting power.
- Preferred Shares: These might not get a vote but enjoy other perks like dividends first.
- Debentures: Essentially loans to the company; they’re hush about governance.
- Annual General Meeting (AGM): The fest where voting shareholders flex their influence.
Suggested Books for Further Reading
- “Corporate Governance and Accountability” by Jill Solomon - A comprehensive guide on the intricacies of corporate governance.
- “The Intelligent Investor” by Benjamin Graham - While focused on investing, it touches significantly on the rights and power of shareholders.
With your arsenal of voting shares, step boldly into those company meetings with the swagger of a seasoned opera director. After all, in the corporate symphony, every vote is a note that shapes the melody of success.
