Supermajority


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Related to Supermajority: absolute majority, supermajority provision

Supermajority

Provision in a company's charter requiring a majority of, say, 80% of shareholders to approve certain changes, such as a merger.

Supermajority

A percentage of shareholders, usually 67% to 90%. A supermajority is often required for a company to take certain actions, such as amending the charter. Some companies require supermajorities as anti-takeover measures. For example, a company may require two-thirds of shareholders to approve of a merger or acquisition. Supermajority provisions exist primarily to ensure the company's independent survival, but they may limit the board of directors' authority in even a friendly takeover.

supermajority

A specified number of votes greater than a 51 percent simple majority. Some condo association bylaws,corporation bylaws,or neighborhood association rules require a supermajority for certain actions, such as making special assessments or amending the bylaws. The rules for the organization will specify the size of the supermajority, which can be anything from 67 to 95 percent.

References in periodicals archive ?
The Legislature needs a three-fifths supermajority to raise taxes on cigarettes, but not to impose higher costs on people studying to become more informed and productive citizens of the state.
The Brocade supermajority vote rule substantially impeded the ability of shareowners to hold management accountable," said CalPERS Senior Investment Officer Eric Baggesen.
The pension funds contend that both nonbinding resolutions are related since Brocade's 67 percent supermajority vote threshold makes it extremely difficult to change the election process necessary to ensure a more responsive board of directors.
HB 2870 would not require a supermajority, and Oregon would not break new ground by opening the door to local tobacco taxes.
Given how much sense a supermajority requirement seems to make, it is perhaps surprising that more states have not made it a part of their judicial retention structures.
Since Proposition 26 is retroactively effective to January 1, 2010, the California legislature may need to reenact the conformity legislation with a two-thirds majority vote of the legislature, as such legislation contained tax increases requiring supermajority approval.
interpreted its legislative supermajority, unrepresentative as it might be, as a popular mandate to trample over checks and balances, such as the courts and the media.
But the number loosely corresponds to the number of Senate cloture motions--which cut off debate and require a supermajority of 60 votes for approval.
Obama's health proposal has stalled in Congress following the Democrats' loss of their 60-seat supermajority in the Senate.
The constitution-making process has stringent supermajority rules that require provisions to obtain widespread consensus before they can be put beyond the ordinary democratic process.
On the plus side, the report notes that the state's employment picture is a bit better than the nation's as a whole, the foreclosure rate is lower than the national average, and the state has not hamstrung its legislative process with any supermajority requirements.
Faced with capital needs, small business owners often not only give these minority owners substantial equity but also provide them with supermajority voting rights for certain actions that require the owners' consent.