Frequently Asked Questions
What is a quorum?A quorum is the minimum percent of shares, present in person or represented by proxy, that would be entitled to take action with respect to a particular matter. (e.g. 51, 75, etc.)What is remote communication?Remote communication means participating in a meeting by means of phone or video conferencing. If permitted, Shareholders connecting remotely are counted as attending the meeting.
Remote communication is beneficial where it may be impractical for some participants to attend due to distance.What is a voting trust?A voting trust is where Shareholders agree to give their voting shares to a third party (the trustee) who holds the shares and will vote the shares in accordance with a voting trust agreement.What is cumulative voting?Cumulative voting may be used when shareholders vote to elect a board of directors. It prevents a majority shareholder from being able to elect all the Directors of a corporation by allowing a minority shareholder to apply all their cumulative votes to one Director.
Where cumulative voting is allowed, the number of votes allowed for each shareholder will be calculated by multiplying the number of voting shares they are entitled to cast by the number of Directors being elected. The shareholder may then cast his total votes for a single Director or may distribute them among two or more Directors.