The United States has strict shareholder voting regulations to protect shareholders' rights. Though votes have increasingly been conducted using online election software, elections are still bound by state and federal regulations.
Tools like ElectionBuddy provide secure online voting platforms designed with user-friendliness in mind. We also have in-house election experts who can help for-profit companies, such as startups, investors, franchises, insurance, and etc., stay in compliance with shareholder voting regulations!
Most states have laws that allow for digital elections. However, in most cases, the company is required to adopt a bylaw or article of incorporation that explicitly allows for online voting. Once the bylaw is in place, companies can conduct future elections online as long as they follow the guidelines below.
Each state has its own notification period for shareholder voting. The notice period can be anywhere from ten to sixty days, and is determined by the state in which the business is incorporated.
In order for a vote to take place, a minimum number of voting shares must be present or cast votes in the election. Quorum thresholds often range from at least 30% to 75% of outstanding shares. Individual companies may require more or less shares to reach quorum.
In order for resolutions to pass, they must be supported by at least 51% of votes. Some resolutions or elections may require that a supermajority of 66% to 75% approve. These are typically amendments that would substantially impact business operations, such as major investments, a company sale, or a change in the bylaws or articles of association.
Once the above-mentioned regulations are met, a company can proceed to hold their election online with platforms such as ElectionBuddy.
As the years have gone by, traditional voting methods have fallen out of favor and have led to decreased voter participation. Online elections are sometimes able to reverse this trend by offering several benefits over in-person or mail-in voting, such as:
Being able to vote securely from anywhere is a huge boon to companies struggling with low voter turnout. When shareholders can access ballots from anywhere and at any time, elections become far more convenient for the majority of voters.
Security is paramount in all elections. Each vote must be anonymous and free from interference.
Online systems like ElectionBuddy use top-tier encryption methods favored by banks and government organizations across the world. This helps to keep elections secure while providing transparent and auditable results.
Online voting allows for votes to be tabulated instantly once an election has concluded. This means voters can see who won faster than with traditional balloting methods.
Technology in shareholder voting is advancing quickly, and ElectionBuddy is at the forefront of digital voting. Our easy-to-use system provides the quickest and most secure platform for casting votes, regardless of the organization that needs it.
HOAs, unions, and corporations of all kinds can benefit from increased voter turnout and faster turnaround times for elections. These savings and increased participation mean that more time and money can be spent on operations rather than election administration!
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