Quorum Reduction: What does it mean?
SHAREHOLDER RESOLUTION 2023-01
At the 2023 Annual Meeting of Shareholders, shareholders were asked to vote on whether BSNC should change the quorum requirement for annual meetings from 50% +1 voted shares to one-third of all shares. Shareholders voted yes – what does this mean?
UNDERSTANDING QUORUM
Quorum represents the minimum number of shares that must be voted for any action to be taken at the Annual Meeting of Shareholders. Quorum requirements are standard in various governing bodies, including corporations with shareholders like Alaska Native corporations.
REASON FOR THE RESOLUTION
The resolution was introduced due to the continuous growth in BSNC’s shareholder base, driven by gifting and inheritance. With this growth, reaching the previously set quorum of 50% +1 voted shares became increasingly challenging. Data suggests that younger shareholders and those with fewer voting shares are less likely to vote, further complicating the quorum attainment process. Failing to reach quorum can lead to delays in annual meetings and crucial business decisions, which can be costly for the corporation.
SIGNIFICANCE OF QUORUM
The quorum requirement for BSNC’s annual meetings has been lowered from 50% +1 voted shares to one-third of all shares. Lowering the quorum requirement to one-third of all shares ensures that the decision-making process remains efficient and inclusive for future generations. This allows for meaningful participation from shareholders of all demographics. Achieving quorum allows BSNC to elect new directors and vote on important business matters.
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