Can a shareholder of a company with more than 1,000 shares transfer to a new director to increase his own voting power?
Ontario, Canada
The following excerpt is from Beatty v. North-West Transportation Co., 1885 CanLII 20 (ON CA):
This right has been carried to what seems almost an extreme length in some of the English decisions, notably in Pender v. Lushington, L.R. 6 Ch. 70. There, although the articles of association provided that every member should be entitled to one vote for every ten shares at a general meeting, but should not be entitled to more than one hundred votes in all, it was held that a larger shareholder could transfer to nominees by him for the purpose of increasing his own voting power, and with an object alleged to be adverse to the interests of the company.
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