The meetings of the company are convened to discuss and decide on specific subjects. Each person may have a different personal opinion. In such a situation it is difficult to take a unanimous decision. There is also a lot of debate among the members on a particular subject. In such a situation, the Speaker takes the opinion of all the members present in the House and decides on the controversial subject on the basis of majority. Thus two or more persons
Voting is the measure taken to ascertain the will or opinion on a matter or idea.
The Companies Act, 2013 provides important voting rights to the shareholders. The voting rights of the shareholders do not depend on the mercy of the directors of the company but are controlled by the Companies Act. Following are the main rules regarding voting rights of the shareholders of a public company.
(1) Every equity shareholder shall have the right to vote in respect of a motion placed in the meeting of the company.
will have the right. (2) His voting rights at the time of voting shall be granted to the company in respect of his share in the paid-up equity share capital.
will be in proportion.
(3) Preference shareholders shall ordinarily not have the right to vote on the motions laid before the House.
(4) Preference shareholders shall have the right to vote only on such resolutions which directly affect the rights relating to those shares. Therefore, the preference shareholders have the right to vote on such resolutions as to the winding up of the company or the return or reduction of its share capital.
(5) If dividend on any class of preference shares has not been paid for two or more years, the preference shareholders of that class shall have the right to vote on all proposals of the company.