FlyerTalk Forums - View Single Post - Poor Pierre-Henri Gourgeon
View Single Post
Old May 30, 2012, 7:45 am
  #11  
irishguy28
FlyerTalk Evangelist
 
Join Date: Mar 2008
Location: Netherlands
Programs: KL Platinum; A3 Gold
Posts: 28,743
Originally Posted by brunos
Hi Richelieu. Directors are individuals and vote as they wish. Each one has one vote whoever he/she "represents" or how he/she was appointed to the board. They do not vote with a proportion of "their" shares.
I think you've misinterpreted or misrepresented what Richelieu is saying.

No one votes "with a proportion of their shares" - if by this you mean someone saying "well, 82% of the shares I represent want to say YES, and 18% of the shares I represent want to say NO".

But the size of the shareholding has to be factored in. If the French government, who apparently own 15.9% of the company, were to abstain, rather than being interpreted as "1 vote - an abstention", it has instead to be weighted as a vote representing fully 15.9% of the issued shares.

So anyone who owns 50.1% or more of a company can always get their way - their single vote will always outrank the (potentially thousands of) other smaller shareholders' votes, who at most only carry a combined weight of 49.9%.
irishguy28 is online now