Investor voting

Owners of shares can have their say on important matters connected not only with the investment itself, but in particular with the running of the investment opportunity. Think of it as a kind of virtual association of unit owners, which most of us know from the management of residential buildings. Companies operate in a similar way in relation to their shareholders, and that is also the model that InvestBay is moving closer to.

The investor thus has the maximum possible control over the running of the property and is not dependent on the decision of a third party. They become a genuine influencer of events and have a direct impact on the economics of the investment they have chosen.

It is also important to mention that voting is entirely voluntary.

Each property has its voting criteria regulated separately (in the prospectus of the given investment opportunity - available in the platform), as the set of questions that are voted on differs for each type of property. Take, for example, the difference between operating a residential property (long-term rental) and a holiday property (an apartment for short-term rental).

The voting itself takes place online directly in the investment platform. InvestBay lets all current shareholders vote, and the weight of their vote is equal to the share they hold in the given opportunity.

Examples of what may be put to a vote:

• Sale of the property or extension of the investment horizon. These situations only occur under predetermined circumstances, for example if InvestBay receives a serious offer to sell the property before the end of the investment horizon and this sale would mean a significant increase in returns for investors. Conversely, an extension of the investment horizon can be voted on when this end (the sale) falls within a period when conditions for selling the property are unfavourable and it is advantageous to wait for a better return on the entire investment. This extension is only possible for 12 months.

• A decision on a financial investment in the property. The property's repairs and other improvements are also financed from its ongoing returns. However, if an investment that exceeds 5 % of the property's value is "on the table", it will be put to a vote.
• A decision to change the property manager. Each property may be managed by a different person or company. A change of this supplier can be voted on if this change means a change in the cost of this service by at least 20 %.
• A decision on a new OTA (online travel agency / operator). We carefully select our suppliers to secure income from short-term rentals. However, if a new candidate submits an offer that differs from our terms (with a higher fee for their services), we will put this to a vote.

How does voting take place?

All investors are informed about the voting 15 days in advance. They also become acquainted with all the documents available for the vote. The voting itself takes place by the investor expressing their will in the Voting tab in the platform. The time for voting is always at least 24 hours.

Less important decisions follow these rules:

In the first round, it is necessary for a number of investors holding at least 50 % of the shares in total to take part. The result is then clear - whichever of the options receives the most votes, that decision is adopted. If at least 50 % of the shares did not take part, then for the second round (held 7 days later) a simple majority of those voting is decisive (the weight of votes according to share).

Important votes:

For important votes (typically those connected with the sale of the property), the rules are stricter. Here too, it applies that at least 50 % of the shares are needed in the first round for a quorum. For the decision to be valid, at least 2/3 of the votes must be in favour of one option. If the condition of 50 % present or 2/3 of those voting for one proposal is not met, the matter also proceeds to the second round, where again a simple majority is sufficient.