Series 82: 3.2.1.1.2. Voting Rights

3.2.1.1.2. Voting Rights

Holders of common stock have voting rights as a privilege of ownership. They can vote to elect the corporate board of directors and to approve corporate resolutions, such as stock splits, mergers and acquisitions, and changes of business direction. They may vote in person at shareholder meetings or by proxy.

A proxy is a person authorized to vote on behalf of the shareholder. Prior to a shareholders’ meeting, holders of common stock will receive a proxy statement describing the issues up for vote and a ballot. They may then return the ballot, authorizing a designated company manager to cast their vote as indicated.

Shareholders are allowed one vote per share. In votes to elect candidates for the board of directors, however, the right may come in one of two forms. In statutory voting, shareholders may vote no more than their number of shares for or against each of the candidates. In cumulative voting, shareholders may vote the