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were going to talk about shareholders our topics include shareholder rights shareholder restrictions shareholder liabilities subchapter S corporations some terms to know by the end of this podcast you should know the meaning of the terms quorum proxy and supermajority voting a quorum is what percentage of the total stocks outstanding must be represented to have any effect as a shareholder vote note that its the total number of shares not the total number of shareholders so lets say that you have a corporation with 100 outstanding shares of stock and your quorum is 50% of that stock must be represented to have any voting effect at a shareholders meeting you own 50 shares of stock and your sister and brother each own 25 shares of stock could you have a meeting by yourself in other words if you called a shareholders meeting and youre the only one who showed up would that be an effective shareholders meeting the answer is yes if you have a 50% quorum you yourself alone are 50% so its