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What Are Voting Rights?

Voting rights are a shareholder's right to vote for or against resolutions put forward at a shareholders meeting.

Relationship with trading units

Many listed companies use a "trading unit" system under which one voting right is granted per trading unit of shares held, rather than per individual share. Shares held below one trading unit generally do not carry voting rights (see the trading unit page for more detail).

How voting rights are exercised

Voting rights can be exercised by attending the shareholders meeting, and many companies also allow exercise in writing or electronically. The specific procedure is described in the notice of the meeting sent out by the company.

This article is provided for general informational purposes only and does not recommend or solicit the purchase or sale of any specific investment method or security. Final investment decisions are your own responsibility.

Frequently Asked Questions

Does one share equal one voting right?
At many listed companies, one voting right is granted per trading unit (tan-gen) of shares, rather than per individual share. Shares below one trading unit generally carry no voting rights.
How are voting rights exercised?
Shareholders can exercise voting rights by attending the shareholders meeting, and many companies also allow exercise in writing or electronically (such as over the internet). The specific procedure is described in the notice of the meeting sent by the company.

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