Q:

What are the shareholders' duties?

A:

Quick Answer

The duties of shareholders are to attend general meetings called by directors, resolve matters that arise at the meetings, and oversee the directors and their actions to make sure the directors act within their powers. Shareholders can vote two types of resolutions: an ordinary resolution and a special resolution.

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Full Answer

If a simple majority of shareholders vote, an ordinary resolution will pass. It takes 50 percent of the votes for the resolution to be valid. A special resolution may be required for a specific vote. For a special resolution to take effect, a 75 percent majority must vote in favor of the proposal.

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