Glossary: Majority Vote

Majority Vote

Majority Vote - In its simplest terms, a Majority Vote at a Board or shareholders meeting means that more than 50% of the directors or more than 50% of the voting stock was voted in favor or against a certain resolution. However, the laws of most states set forth some business decisions that require the support of a supermajority vote of the shareholders in order to adopt or approve the matter. This is required so that the majority shareholders do not approve a few select resolutions at the expense of the minority shareholders. In those instances where approval by a supermajority is required, the resolution is deemed rejected even though a simple majority of the shareholders voted in favor of it.

Disclaimer: The foregoing is intended to provide general information and may not be suitable in specific instances. The glossary information is not intended to be exhaustive, but rather to illustrate typical considerations. The material is provided with the understanding that it is not legal, accounting, tax or any other professional advice.

Copyright © 2003-2010 LawVantage.com, LLC. All rights reserved.
Important LawVantage.com, LLC and its website, CorporateBoardMinutes.com, do not render any legal, accounting or other consulting advice.
For legal advice, you should always consult with a qualified attorney-at-law.

Website development by

Vine Design.