Reviewed by Sep 30, 2020| Updated on
A document used by the shareholders to exercise their voting rights is called a Ballot. This document is submitted by the shareholders before the company's annual general meeting.
This document may also be used by the shareholders to vote on important matters of the company arising during the year. It can be submitted to the company via electronic means or manually on the day of the annual general meeting. Through ballot, the shareholders can vote on matters relating to the company they own.
Audit fees for the year, the re-election of BOD of the company or changes to the board can be placed on the ballot for the shareholder's opinion.
Not all shareholders will receive a ballot for the purpose of voting. Those who own shares through mutual funds, exchange-traded funds (ETFs), or other pooled investment vehicles, the fund manager will submit the ballots on behalf of the shareholders. Earlier, ballots were physical documents. Currently, electronic ballots are also used.