In a situation where decisions are made by vote, the typical threshold to get anything done is 50%-plus-one. So...you need half of everyone’s vote plus one more to get a proposal passed.
However, that’s not always the case. Sometimes you need a super majority. The term refers to a different, higher threshold for getting a particular measure enacted.
An example in government comes from the vote needed to overcome a presidential veto. In that case, 2/3 of the House and Senate need to vote for something in order to overcome a veto. Not a majority...a super majority of 2/3.
In corporate terms, a company's bylaws will spell out the voting rules and procedures. Certain decisions may require super majority votes by shareholders.
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Finance: What is non-voting stock?4 Views
finance a la shmoop- what is non-voting stock? hmm well it's stock that doesn't
vote. bet you're shocked to hear that. most people need a PhD in finance to [stock wears an "I didn't vote" sticker.
understand that notion. but really that's it in most cases common stock carries
with it the right to vote. and in fact it's the common shareholders who elect
the board of directors. but every now and then a potentially hostile investor
comes along and buys or wants to buy a big chunk of stock in a company. well the
amount might be a block large enough to elect that potentially hostile investor
slate or the group of people that investor wants to place on the board to
represent her evil intentions .when that happens companies will often create a
class of common stock similar in every way to its normal common only with its [stock checklist of privileges listed]
voting rights stripped away .that way the investor can own an economic interest in
the company but not monkey with the board.
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