One share, one vote is a standard found in
corporate law and
corporate governance, which suggests that each person who invests money in a company has one vote per share of the company they own, equally with other shareholders. Often, shares with one vote each are referred to as
common stock
Common stock is a form of corporate equity ownership, a type of security. The terms voting share and ordinary share are also used frequently outside of the United States. They are known as equity shares or ordinary shares in the UK and other Co ...
. Most systems of corporate law discourage shares without votes unless they have preferential dividends or liquidation rights, and shares with multiple voting rights are discouraged altogether so as to prevent the concentration of
corporate power.
Countries with this system
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The United Kingdom
The United Kingdom of Great Britain and Northern Ireland, commonly known as the United Kingdom (UK) or Britain, is a country in Europe, off the north-western coast of the continental mainland. It comprises England, Scotland, Wales and No ...
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Canada
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The Commonwealth of Australia
Australia, officially the Commonwealth of Australia, is a sovereign country comprising the mainland of the Australian continent, the island of Tasmania, and numerous smaller islands. With an area of , Australia is the largest country by ...
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The Federal Republic of Nigeria
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New Zealand
New Zealand ( mi, Aotearoa ) is an island country in the southwestern Pacific Ocean. It consists of two main landmasses—the North Island () and the South Island ()—and over 700 smaller islands. It is the sixth-largest island country ...
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The People's Republic of China
China, officially the People's Republic of China (PRC), is a country in East Asia. It is the world's most populous country, with a population exceeding 1.4 billion, slightly ahead of India. China spans the equivalent of five time zones an ...
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Jamaica
Jamaica (; ) is an island country situated in the Caribbean Sea. Spanning in area, it is the third-largest island of the Greater Antilles and the Caribbean (after Cuba and Hispaniola). Jamaica lies about south of Cuba, and west of Hispanio ...
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Ghana
Ghana (; tw, Gaana, ee, Gana), officially the Republic of Ghana, is a country in West Africa. It abuts the Gulf of Guinea and the Atlantic Ocean to the south, sharing borders with Ivory Coast in Ghana–Ivory Coast border, the west, Burkina ...
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United States
The United States of America (U.S.A. or USA), commonly known as the United States (U.S. or US) or America, is a country primarily located in North America. It consists of 50 states, a federal district, five major unincorporated territo ...
History
Historically, more corporations followed the rule of
one person, one vote, so that the
corporate power of wealthy investors was capped. This practice declined over the late 19th century. During the 1920s and 1930s, the practice of multiple voting shares, and voteless shares, without any preferential rights became widespread, resulting in the disenfranchisement of many ordinary investors. This was halted by stock exchange regulation and corporate law amendments in most countries.
See also
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Differential voting right shares
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UK company law
The United Kingdom company law regulates corporations formed under the Companies Act 2006. Also governed by the Insolvency Act 1986, the UK Corporate Governance Code, European Union Directives and court cases, the company is the primary legal ...
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US corporate law
United States corporate law regulates the governance, finance and power of corporations in US law. Every state and territory has its own basic corporate code, while federal law creates minimum standards for trade in company shares and governanc ...
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One member, one vote
In the parliamentary politics of the United Kingdom and Canada, one member, one vote (OMOV) is a method of selecting party leaders, and determining party policy, by a direct vote of the members of a political party. Traditionally, these objectives ...
and
One person, one vote, in political parties
References
{{reflist
Corporate law