My vote makes no difference…does it?

Anyone investing in a company whose shares are traded publicly can have a say in how it is run. That takes the form of voting on issues that will affect the business and could have an impact on shareholders.

Ballots cover such matters as the appointment of directors and their salaries, structural changes and developments, including takeover bids made or received by the company. In some cases, each share will have one vote, meaning an individual with a small holding is unlikely to have much influence. In others, all votes will be of equal value.

Shareholders receive an invitation to attend the company’s annual general meeting, or a special meeting if the vote is urgent. The meeting notice includes details of the motions due to be debated. Votes will be counted during the meeting for those who are there in person. An alternative is to vote by post, online or to allocate the vote to a proxy who will vote for the shareholder.

If the shares are held through a fund – such as an ISA, OEIC or unit trust – the fund manager will vote on behalf of individuals.

Although many people are happy to leave the decision making to others, issues subject to a ballot can have a significant impact on a company’s performance and could influence the share price. The future plans of a business are an important consideration when investing. If you are want to discuss wealth management in Shropshire, give us a call.

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