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Hi Mike,
I saw in an ACCA question that an ordinary resolution to pass needs more than 50% “actually voting”. Does this mean that it only needs more than 50% of the people present in the meeting?
Thank you.
No. When votes are counted (not the number of voters but the number of votes) the “for” vote total is compared with the “against” vote total.
If there are more “for”s than there are “against” then the ordinary resolution has been passed
We don’t count the voting power of those members who haven’t attended (unless they have appointed a proxy to vote on their behalf) and we don’t count the votes of those people who have attended but who have chosen not to vote ie to abstain
It is possible for 3,000+ members to be present at a meeting and the Chair calls for a vote after a discussion about a particular matter. “All those in favour please show your hand” and a little old gentleman with a Zimmerman frame sitting at the back of the room and owning just one share puts his hand in the air.
“All those against please raise your hand” and no one moves.
The resolution is carried UNANIMOUSLY ie the only votes cast were cast in favour of the resolution with no votes registered against he resolution.
There’s a bit of Latin that I don’t use in lectures but where a vote is taken and no one votes against it, the resolution is said to be carried “nem con” meaning “no one voted against it”
Ok?
Hmm interesting! That would be the same for a Special Resolution? More than 75% actually voting?
Thank you so much for the reply and clear explanation!
In the recorded lectures I play a trick (twice!) on the class
“There are 20 of us in the room. What is the MINIMUM number of us that must vote in favour in order to pass a special resolution?” The answers range from 11 (ordinary resolution) through 15 (good answer) to 16 (no, it’s “not less than 75%”, not “more than 75%”)
The correct answer is 1. If only one person votes and that person votes in favour, then the resolution is passed
So, same question, but everyone votes. The answer is still 1 – I had never said that we all had the same number of votes. If 19 had only 1 vote each and I had 200, then my votes would pass a special resolution
So, same question, but we all have the same number and we all vote? What’s the MINIMUM number of members that must vote in favour in order to pass a special resolution, Barbara? And frequently students will answer “1”!
This time, the answer is 15 (if there are 20 of us in the room)
All clear?
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