SUPERVOTING Meaning and
Definition
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Supervoting is a concept that refers to a special structure of voting rights in a corporation, where certain shareholders possess a greater number of votes per share than others. This gives these shareholders more power and control over decision-making within the company. The term is often used in the context of corporate governance and shareholder rights.
In supervoting arrangements, certain shares are designated as "super" or "Class B" shares, which have multiple votes per share, while the remaining shares, typically referred to as "ordinary" or "Class A" shares, have only one vote per share. This means that each super share could carry, for example, ten or more votes, while each ordinary share would have only one vote. The purpose behind this structure is usually to concentrate voting power in the hands of a select few shareholders, typically founders or key executives, enabling them to maintain control and decision-making authority in the company, even if they own a relatively small percentage of the total shares.
Supervoting can effectively protect the interests of those with more voting power, as they can exert their influence over major business decisions, such as electing the board of directors, appointing senior executives, or approving significant corporate actions. However, it can also result in a significant power imbalance and limit the influence and voice of minority shareholders, which can potentially impact overall corporate governance practices. Therefore, the use of supervoting structures is a subject of public debate and scrutiny, often arising in the context of transparency, shareholder rights, and corporate accountability.
Etymology of SUPERVOTING
The word "supervoting" is derived from two parts: "super" and "voting".
The prefix "super-" comes from the Latin word "super", meaning above or beyond. It is commonly used in English to denote something that is above, better, or superior to others. In the context of "supervoting", the prefix "super-" implies a higher or superior form of voting.
The term "voting" refers to the act of expressing a choice or opinion on a particular matter through a formal process. Voting is a fundamental aspect of democratic systems, allowing individuals to participate and have a say in decision-making processes.
When combined, "supervoting" refers to a type of voting structure or system in which certain individuals or entities possess a greater or superior voting power compared to others. It implies that some shareholders or participants have more voting rights than others, giving them enhanced control or influence over decision-making.
