Voting

start investment club guide voting

Once you have decided on the meeting format, you will need to agree on the members’ voting procedures. The following are points to take into consideration:

Voting Rights

In respect of voting you will need to agree on the level of rights attached to each vote. For instance does every member have an equal vote or do some have a greater proportion of the vote. You might decide that some do deserve more, as a result of them having invested more or providing key experience that is needed for the club.

Process

How this will be done (i.e. in person, via voting site or other). Whichever method you agree on, consider how members will vote if they’re away or unable to attend the meeting and what this will mean for hung votes etc.

Timing

Will this be done at the meeting or would members prefer to have some time to consider and then vote. If the vote is delayed then make sure a defined and agreed time period is formally noted.

Hung Vote

What will happen if there is a hung vote – i.e. an equal number of votes for two or more different investment opportunities. One option is to let the Chairman have the deciding vote. Alternatively, if there were members that voted for another tabled option that is not in contention, will they then be required to revote for one of these that is.

Splitting Votes

Will members be allowed to vote for more than one investment and how will this be managed? It might be that there is more than one investment opportunity that members can’t decide between. Should they want to vote for both and split the investment amount between them, discuss how you will manage this.

One way of doing this is allowing members to allocate what percentage of their vote goes to each investment opportunity. For example a member might say 10% goes to Opportunity 1, 80% to Opportunity 2 and 10% to Opportunity 3. You would then just add up the total percentages for each opportunity to see the ranking as decided by the group.