Companies Act Section 106 — Restriction on voting rights
CHAPTER VII MANAGEMENT AND ADMINISTRATION
Commercial / Corporate
Summary
Sub-section (1) allows a company's articles of association to include a rule that stops a member from voting on shares if the member has not paid calls or other amounts that are currently due on those shares, or if the company has exercised a right of lien over those shares.
Sub-section (2) states that a company cannot stop a member from voting on any ground other than the ones listed in sub-section (1).
Sub-section (3) provides that when a poll is taken at a company meeting, a member who has more than one vote, or their proxy or other authorised person, does not have to use all their votes, and if they do vote, they do not have to cast all their votes in the same way.
Official Text
(1) Notwithstanding anything contained in this Act, the articles of a company may provide that no member shall exercise any voting right in respect of any shares registered in his name on which any calls or other sums presently payable by him have not been paid, or in regard to which the company has exercised any right of lien.
(2) A company shall not, except on the grounds specified in sub-section (1), prohibit any member from exercising his voting right on any other ground.
(3) On a poll taken at a meeting of a company, a member entitled to more than one vote, or his proxy, where allowed, or other person entitled to vote for him, as the case may be, need not, if he votes, use all his votes or cast in the same way all the votes he uses.