Voting Right

DEFINITION of 'Voting Right'

The right of a stockholder to vote on matters of corporate policy and who will make up the board of directors. Voting often involves decisions on issuing securities, initiating corporate actions and making substantial changes in the corporation's operations.

BREAKING DOWN 'Voting Right'

Shareholders do not necessarily need to be physically present at the site of the company's annual meeting in order to exercise their right to vote. It is common for shareholders to voice their vote by proxy by mailing in their response. Unlike the single vote right that individuals commonly possess in democratic governments, the number of votes that a shareholder has corresponds to the numbers of shares that he owns. For example, a shareholder that owns 100 shares will have a 100 times more sway than a shareholder that owns a single share.

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