• Variable Voting Power
• Vote Power proportionate to alloted weightage

One of the features necessary in conducting of Polls in the business sector is Weighted Voting.Here, each voter has a variable voting power which results in some having more of an influence on the outcome of a vote than that of another.

In a Corporate Shareholder meeting, each Shareholder’s voting power is in proportion to the number of shares held by them.

Many International Institutions like the World Bank and International Monetary Fund also apply Weighted vote in its decision making. In these scenario’s certain economic parameters are used to determine the voting share of each country,

In the Indian context, the concept of Weighted Vote is also widely used by Financial Institutions and also in bankruptcy and insolvency case scenarios.

The Insolvency and Bankruptcy Code, 2016 (‘Code’) calls for all the creditors of the defaulting company to create a body, referred to as Committee of Creditors with voting powers allocated in accordance with their respective default amount.

Take a scenario where the the total default amount of a Corporate Debtor is Rs 100 crores. A creditor with a default amount of Rs 15 crores will have a voting share of 15%.

This Committee is the authority and is empowered to vote and take decisions respect of approval of resolution plans and other important matters in respect to the Corporate Debtor.

An effective tool, Weighted Voting can be a crucial factor that determines the result of a vote.