How Are Voting Rights and Decision-Making Power Distributed among Members in a Loan Syndicate Consortium?
In a loan syndicate consortium, voting rights and decision-making power are typically distributed based on predefined governance rules. Power can be allocated equally among all members, or it can be weighted based on factors such as the member's financial stake in the syndicate, their level of participation, or their role in the loan origination process.
These rules are encoded in the consortium's charter and can be enforced by smart contracts, ensuring a transparent and auditable governance process for all decisions, from loan modifications to the addition of new members.