Richard Bruton
Ceist:73 Mr. R. Bruton asked the Tánaiste and Minister for Enterprise, Trade and Employment the plans she has to alter the weighting given to different shareholders in determining decisions at shareholders meetings. [20967/00]
Written Answers. - Weighting of Shareholders.
The basic provisions of company law currently provide that decisions at shareholders meetings are normally taken by way of a show of hands in the first instance and secondly by means of a poll. In the case of a show of hands, each member at the meeting and entitled to vote has one vote only, irrespective of the number of shares he or she holds. However in the case of a poll, every member shall have one vote for each share carrying voting rights which he or she holds. The effect of this is that the extent of the members shareholding is taken fully into account and thereby ensures that voting rights are more equitably divided.
Because a vote on a show of hands disregards the extent of the members shareholdings, clearly this is not an entirely satisfactory method of ascertaining the members wishes. For this reason the Companies Acts protects the right, recognised at common law, of members to demand a poll. Section 137 of the Companies Act, 1963, provides that any provision contained in a company's articles of association which excludes the right to demand a poll on any question shall be void. The basic provision of company law is that a valid demand for a poll can be made by five members present in person or by proxy. A valid demand for a poll can also be made by the chairman of the company, who will normally exercise that power where there is any doubt as to whether a vote on a show of hands truly represents the majority view of the members on a matter of importance.
I have no plans to alter the basic requirements of company law in relation to voting rights. To do so would be to undermine the one share one vote principle which would be difficult to argue against from an equity and fairness viewpoint.
Question No. 74 taken with Question No. 19.
Question No. 75 taken with Question No. 48.