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Companies Act, 1973 (Act No. 61 of 1973)

Chapter VII: Administration of Companies

Voting Rights and Voting

195. Determination of voting rights

 

 

1) A member of a public company having a share capital shall-
a) if the share capital is divided into shares of par value, be entitled to that proportion of the total votes in the company which the aggregate amount of the nominal value of the shares held by him bears to the aggregate amount of the nominal value of all the shares issued by the company;
b) if the share capital is divided into shares of no par value, be entitled to one vote in respect of each share he holds.

 

2) The voting rights of a member of a private company shall, subject to the provisions of section 193(1), be determined by the articles of the company.

 

3) When any shares of a company are converted into stock, or have been so converted after the first day of January, 1953, all the provisions of this section shall apply mutatis mutandis as if such stock consisted-
a) in the case of shares of par value, of as many units of equivalent number and value as the number and nominal value of the shares so converted; or
b) in the case of shares of no par value, of as many units as the number of shares so converted.

 

4) Notwithstanding the provisions of this section, the articles of a company may provide-
a) for the chairman of any meeting to have a casting vote; and
b) for the votes to which any member is entitled above a stated number to increase, not in direct proportion to the number of shares held, but in some lower proportion specified in such articles and may in such event further provide that no member shall be entitled to a number of votes exceeding the number so specified or that the number of votes to which any member is entitled be limited to a specified number.