What is Weighted Voting?

What Is Weighted Voting?

Weighted voting is a set of rules that give some voters a greater influence — or weight, than others. The amount of influence accorded to these voters is related to their contribution to that organization.

Common Examples of a Weighted Voting System

The most common examples of a weighted voting system include:

• Member organizations such as Homeowners’ associations (HOAs) and some financial institutions.
• The U.S. Electoral College, where the number of votes for each state is based upon that state’s population.
• Public-traded companies that typically grant each stockholder one vote for each share they hold.

Weighted voting sounds complicated, but it’s actually very commonly used. HOAs use this voting system based on the number of units owned or the square footage of properties a member manages. Some financial institutions utilize weighted voting by measuring assets owned, the number of shares held, or the amount of equity allocated to each member.

How Does Weighted Voting Work?

Simply put, with weighted voting, you allot each member or stakeholder’s votes based on the weighting criteria outlined by your organization. Your executive committee will typically review and recalculate the formulas by which votes are weighed regularly to ensure full member representation.

Example 

Let’s say your HOA weighs votes based on the number of units owned:

• Owner One has 10 units and contributes $100 to the HOA
• Owner Two has 100 units and contributes $1,000 to the HOA
• Owner Three has 1,000 units and contributes $10,000 to the HOA

Owners One and Two contribute a lower volume of the overall HOA contributions, so their voting power is less. When balanced against the contributions of the other members, their relative voting power would be approximately:

• Owner One — 1.5% – 2 votes
• Owner Two — 5.5% – 5 votes
• Owner Three — 20% – 20 votes

Why Do Member Organizations Utilize Weighted Voting?

Member organizations often utilize weighted voting to ensure fair voting and accurate representation of members’ contributions. They may ask, for example, “Should the vote of a stockholder with one share have the same weight as a stockholder with 100,000 shares?” 

Boards and members often feel the number of votes allocated to each voter should reflect their contribution to the organization. The greater the involvement, the greater the voting power. So, the stockholder with more shares ultimately receives more votes.

Weighted voting also contributes to good governance. By reducing the risks of vote-buying and corruption, weighted voting actually rewards members based on their engagement with the organization. 

Can Weighted Voting Make Elections More Complicated?

Weighted voting can complicate things for member organizations completely administering their own elections — but it doesn’t have to be that way. As a third-party elections partner, Survey & Ballot Systems (SBS) has developed tools to help member organizations manage in-person, paper, online, and hybrid elections that can easily integrate weighted voting:

DIY Election Software: Smaller member organizations can self-administer their elections with fast, secure, and easy-to-use technology and support. You can now manage elections, including those featuring weighted voting, easily from one dashboard.

Fully Managed Voting: With our fully managed solution, we handle every aspect of your election process for you. Enjoy the same high level of security and ease, with the added benefit of a dedicated project manager overseeing every detail. Ideal for member organizations seeking a hands-off approach, including those with weighted voting needs.

Real-time Voting Software: Make any real-time or live virtual, in-person, or hybrid voting secure and official with online voting software. These systems remove any guesswork or confusion from a weighted vote.

Frequently Asked Questions (FAQs)

Here are some FAQs on weighted voting:

What are weighted voting rights in a shareholder agreement?

These are the rights of shareholders included in a company’s articles of association that vary the voting rights of certain shareholders or levels of shareholders, giving those shares more voting weight than one vote per share.

How many shares do I need to have voting rights?

Typically, provided you own a stock in the company, you have the voting rights to make decisions affecting the company. The more shares you own, the more voting power you earn, as each share is considered one vote.

Is the weighted voting system fair?

Considering that the weighted voting system contrasts with the non-weighted voting system, where all voters have the same power, the question of fairness arises. A weighted voting system is fair in the sense that every member is only accorded power to the level in which they contribute to the organization’s growth or existence. So, the more you contribute, the more voting power you gain, and that makes it fair.

Learn More About SBS Weighted Voting Solutions

Are you wondering if weighted voting might benefit your member organization, or are you considering adding it and not sure how it might affect your election process? Contact us any time — we’re here to help.

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