16-10a-721 - Voting entitlement of shares.
16-10a-721. Voting entitlement of shares.
(1) Except as otherwise provided in Subsections (2) and (4), in Section 61-6-10, or in thearticles of incorporation, each outstanding share, regardless of class, is entitled to one vote, andeach fractional share is entitled to a corresponding fractional vote, on each matter voted on at ashareholders' meeting. Only shares are entitled to vote.
(2) Except as otherwise ordered by a court of competent jurisdiction upon a finding thatthe purpose of this subsection would not be violated in the circumstances presented to the court,the shares of a corporation are not entitled to be voted or to be counted in determining the totalnumber of outstanding shares eligible to be voted if they are owned, directly or indirectly, by asecond corporation, domestic or foreign, and the first corporation owns, directly or indirectly, amajority of the shares entitled to vote for directors of the second corporation.
(3) Subsection (2) does not limit the power of a corporation to vote any shares, includingits own shares, held by it in a fiduciary capacity.
(4) Redeemable shares are not entitled to be voted after notice of redemption is mailed tothe holders and a sum sufficient to redeem the shares has been deposited with a bank, trustcompany, or other financial institution under an irrevocable obligation to pay the holders theredemption price on surrender of the shares.
Enacted by Chapter 277, 1992 General Session