Definition
Postal Ballot
A postal ballot lets shareholders vote on resolutions remotely, without attending a physical meeting.
Certain matters under the Companies Act must, and others may, be transacted by postal ballot, where shareholders cast votes by post or, increasingly, through e-voting platforms. This widens participation by allowing geographically dispersed shareholders to vote on important resolutions.
The process is overseen by a scrutiniser who reports the results. Postal ballots are common for special resolutions taken outside general meetings and have largely shifted to electronic voting in practice.
Related terms
- Annual General Meeting (AGM)An AGM is the yearly meeting at which a company's shareholders vote on key matters such as accounts, dividends and director appointments.
- Extraordinary General Meeting (EGM)An EGM is a shareholders' meeting held outside the AGM cycle to decide urgent or special matters.
- E-VotingE-voting is the electronic casting of votes by shareholders on company resolutions, before or during a general meeting.
Plain-English explainer from The Dispatch Investors Encyclopedia. General information, not financial advice.