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Voting rights

Voting rights

Voting rights are a shareholder's right to vote at the general meeting, often depending on share class.

What are voting rights?

Voting rights are a shareholder's right to vote at the general meeting and thereby influence decisions in a limited company. The number of votes a share gives is called its voting power.

 

Voting power and share classes

Different share classes can carry different voting power — an A share often gives more votes than a B share. This lets founders keep control even after a new share issue. Voting power is also decisive for who controls a corporate group. The distribution is set out in the articles of association and the share ledger.

Learn more about the shareholder register
Henrik Kristensen, NVR
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Related terms

Voting power

Voting power is how many votes a share gives at the general meeting.

Share class

Share class refers to different types of shares in a company, e.g. A and B shares, with different rights.

General meeting

The general meeting is the highest decision-making body in a limited company, where shareholders make decisions.

Common shares

Common shares are the most usual shares in a company and normally carry full voting rights.