Voting Rights
IntermediateVoting rights are the rights of shareholders to vote on company matters, such as electing directors, approving major transactions and changing the company's constitution, usually in proportion to the number of shares they own.
Ordinary shares typically carry one vote per share. Shareholders use their votes at general meetings, either in person or by proxy, on matters such as electing and removing directors, approving executive pay policies, appointing auditors and approving mergers, share issues and changes to the company's rules.
Some companies issue different classes of shares with different voting rights. In a dual-class structure, founders may hold shares with ten votes each, while public investors hold shares with one vote or none. This allows founders to keep control while raising money.
For example, a technology company's founders might own 15% of the shares but control 60% of the votes through high-voting shares.
Dual-class structures are controversial. Supporters argue they let founders focus on long-term goals without short-term pressure. Critics argue they weaken accountability to shareholders. Some stock indices and exchanges limit or restrict them, and many investors push for one share, one vote.
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