Question

A requirement that a greater than majority of shares constitutes a quorum of the vote of the shareholders is known as the ________ requirement.

a) Supermajority
b) Plurality
c) Unanimous
d) Majority

Answer 1

The requirement that a greater than majority of shares constitutes a quorum of the vote of the shareholders is known as the supermajority requirement.

Step-by-step explanation:

The requirement that a greater than majority of shares constitutes a quorum of the vote of the shareholders is known as the supermajority requirement.

Under a supermajority rule, a proposal or decision must receive more than a majority of the votes cast. This is typically defined as 60% or more of the votes. Supermajority rules are often used for important or consequential decisions.

For example, countries that allow the legislature to amend the constitution usually require supermajorities to pass such amendments. Additionally, some voting rules for corporate governance may also require supermajorities for certain matters.