Written by attorneys · grounded in primary & secondary sources — see below
A decision rule under which an action is approved if supported by more than half of the qualified participants who are present and voting, subject to any quorum requirements imposed by statute or governing documents.
Sources & Authorities
How it applies
Common Examples
6
Board Dismisses Derivative Suit
Matrix Technologies faces a shareholder derivative suit alleging self-dealing by its CEO. At a special board meeting, four of eight directors attend. All four are disinterested and independent. They vote unanimously that continuing the suit is not in the corporation's best interests. The court dismisses the action because the qualified directors present formed a quorum and approved the determination by majority vote.
Owners Form Management Association
Cedar Equity and owners of fourteen parcels in a twenty-five-parcel office park vote to create an association to collect assessments and maintain a shared pond. Red Finance, owning four parcels, refuses to join. The court upholds the association because a majority of lot owners may create the entity to manage common servitudes when the declaration is silent on exclusion.
Select any source to read its text and confirm it supports the definition.
Statutes
Model Codes
Restatements
Dictionaries
Committee Recommends Dismissal
Granite Threads faces a derivative suit alleging its CEO diverted sales. At a board meeting attended by the CEO and two independent directors, the two qualified directors appoint themselves as a litigation committee. After investigation they vote unanimously that the suit should not continue. The court grants dismissal because a majority of the qualified committee approved the determination.
Tribe Selects Representatives
Adult mixed-blood Ute members hold a special election to choose authorized representatives who will manage mineral rights alongside the Tribal Business Committee. A majority of those voting select the Affiliated Ute Citizens group. The selection satisfies the statutory requirement for majority approval at the election called by the Secretary of the Interior.
Affiliated Ute Citizens of Utah v. United States406 U.S. 128, 153-154 (1972)
Judicial Candidates Debate Policy
A state judicial candidate announces positions on controversial legal issues during a campaign. Opponents argue the announcement violates the code of judicial conduct. The Court holds that the First Amendment protects the speech because issues of law and policy are decided by majority vote in a democracy and judges must remain indifferent to popularity when deciding cases.
Republican Party of Minnesota v. White536 U.S. 765, 122 S.Ct. 2528, 153 L.Ed.2d 694 (2002)
Commission Votes on Enforcement
The Federal Election Commission considers whether to pursue civil enforcement against a political committee. All decisions on enforcement duties must be made by majority vote of the members. The Commission cannot delegate any member's vote or decision-making authority to staff or another person.
Buckley v. Valeo424 U.S. 1, 93 (1976)
Common questions
Frequently Asked
3
When does a board determination support dismissal of a derivative suit under the Model Business Corporation Act?+
A derivative proceeding is dismissed if a determination is made in good faith after reasonable inquiry by a majority of qualified directors present at a meeting when those directors constitute a quorum. The plaintiff must then allege particularized facts showing the determination failed to meet the statutory requirements.
Supporting sources
May a special litigation committee be appointed even if qualified directors do not form a quorum of the full board?+
Yes. The statute permits a committee of two or more qualified directors to be appointed by majority vote of qualified directors present at a board meeting regardless of whether those directors constitute a quorum of the entire board.
Supporting sources
When may a majority of lot owners create a binding association in a common-interest community?+
If the declaration neither provides for nor expressly excludes an association, owners of a majority of the lots may form one after the developer has sold all parcels. All owners automatically become members and the association may exercise powers reasonably necessary to manage common property and enforce servitudes.
Supporting sources
424 U.S. 1 (1976)Legislation and Regulation
…the Commission with respect to the exercise of its duties and powers under the provisions of this subchapter shall be made by a majority vote of the members of the Commission. A member of the Commission may not delegate to any person his vote or any decisionmaking authority or duty vested in the Commission by the provisions of…