Ohio Governor Ted Strickland signed a bill into law yesterday that allows Ohio corporations to permit directors to be elected by means other than a plurality of votes. Previously, Ohio law stated that director candidates who receive the greatest number of votes are elected. The law has been amended to allow shareholders to provide for different methods of election in the articles of incorporation, such as election by a majority vote.
The Ohio State Bar Association supported the amendment because some Ohio corporations have received shareholder proposals to reincorporate in states where a majority voting provision could be adopted, namely Delaware. The OSBA expects the new law to keep businesses in Ohio.