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HomeCorporations CodeCh. 7§ 707 Shareholder Meeting Inspectors

§ 707 Shareholder Meeting Inspectors

Corporations Code·California
AI Summary·Official Text·Key Terms·Related Statutes·References
AI SummaryVerified

§ 707 Shareholder Meeting Inspectors

Key Takeaways

  • •Before a shareholder meeting, the board can pick people (called inspectors) to help run the voting. If they don’t, the person leading the meeting must pick them if anyone asks.
  • •Inspectors can be 1 or 3 people. If shareholders ask for inspectors at the meeting, most shareholders get to decide if it’s 1 or 3.
  • •Inspectors check who can vote, count votes, make sure everything is fair, and decide the results. They must be fair and honest.
  • •If there are 3 inspectors, the majority (2 out of 3) decides. Their report is like proof of what happened unless someone can show it’s wrong.

Example

At a company’s big meeting, shareholders are voting on something important, like picking a new boss. Some people think the voting isn’t fair.

The company’s board should have already picked inspectors to watch the voting. If they didn’t, any shareholder can ask the meeting leader to pick them right then. The inspectors will check who’s allowed to vote, count the votes, and make sure everything is fair. If most shareholders want 3 inspectors instead of 1, they get to decide that.

AI-generated — May contain errors. Not legal advice. Always verify source.

Official Source
View on CA.gov

§ 707 Shareholder Meeting Inspectors

(a) In advance of any meeting of shareholders the board may appoint inspectors of election to act at the meeting and any adjournment thereof. If inspectors of election are not so appointed, or if any persons so appointed fail to appear or refuse to act, the chairperson of any meeting of shareholders may, and on the request of any shareholder or a shareholder’s proxy shall, appoint inspectors of election (or persons to replace those who so fail or refuse) at the meeting. The number of inspectors shall be either one or three. If appointed at a meeting on the request of one or more shareholders or proxies, the majority of shares represented in person or by proxy shall determine whether one or three inspectors are to be appointed. (b) The inspectors of election shall determine the number of shares outstanding and the voting power of each, the shares represented at the meeting, the existence of a quorum and the authenticity, validity and effect of proxies, receive votes, ballots or consents, hear and determine all challenges and questions in any way arising in connection with the right to vote, count and tabulate all votes or consents, determine when the polls shall close, determine the result and do such acts as may be proper to conduct the election or vote with fairness to all shareholders. (c) The inspectors of election shall perform their duties impartially, in good faith, to the best of their ability and as expeditiously as is practical. If there are three inspectors of election, the decision, act or certificate of a majority is effective in all respects as the decision, act or certificate of all. Any report or certificate made by the inspectors of election is prima facie evidence of the facts stated therein. (Amended by Stats. 2022, Ch. 617, Sec. 16. (SB 1202) Effective January 1, 2023.)

Last verified: January 23, 2026

Key Terms

inspectors of electionshareholders' meetingprima facie evidencevoting powerquorum

Related Statutes

  • § 12483 Election Inspector Appointment Rules
  • § 5615 Meeting Election Inspectors
  • § 7614 Election Inspector Appointment
  • § 12462 Member Meeting Quorum Rules
  • § 18330 Member Voting Rules

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Corporations Code. Section 707.
View Official Source