Voting question

[Guest Ralph]

Bylaws state a majority of the shareholders needed to elect a new shareholder. There are 16 shareholders

 

At a regular meeting the 16 members vote on a new shareholder, 8 vote yes 8 abstain. 

Is the newshareholder approved?

 

[jstackpo]

Are you sure your bylaw says "majority of shareholders" and not "majority of the shareholders voting" or something like that?

Although we don't usually mess with other people's bylaws here, please quote the EXACT words in the bylaws and we will see what we might be able to do for you.

[Guest Ralph]

21 minutes ago, jstackpo said:

Are you sure your bylaw says "majority of shareholders"

I did, thats all it says

[Greg Goodwiller, PRP]

Can you give the entire quote, just to be sure? If it is as you say, and nothing else, then no. But there are several variations that would change it, such as: "a majority vote of the shareholders," a majority of shareholders voting," "the shareholders present share constitute the shareholders for the purpose of admitting new shareholders," or whatever.

[Guest Ralph]

10 hours ago, Greg Goodwiller said:

Can you give the entire quote, just to be sure? If it is as you say, and nothing else, then no. But there are several variations that would change it, such as: "a majority vote of the shareholders," a majority of shareholders voting," "the shareholders present share constitute the shareholders for the purpose of admitting new shareholders," or whatever.

"New shareholders shall  be admitted, upon a vacancy, by a majority vote of all the shareholders"

[Richard Brown]

27 minutes ago, Guest Ralph said:

"New shareholders shall  be admitted, upon a vacancy, by a majority vote of all the shareholders"

Based on the quoted language, my opinion is that the shareholder was not approved. I interpret that wording as meaning it requires the vote of a majority of all of the shareholders. It is rather awkwardly worded, and it's not the language suggested by RONR when the vote of a majority of all of the members of something is required.

However, since it is not the wording suggested by RONR, it is ultimately a matter of bylaws interpretation and it is up to your organization to interpret its own bylaws. That is something we cannot do for you.