Non – Voting Shares

Non – Voting Shares Ordinary equity shares in a company without any voting rights. All equity shares in Indian companies now carry voting rights, although there is a proposal to create two kinds of shares, with and without voting rights. The incentive for owning non – voting shares would be a higher dividend than that offered for shares with voting rights, while the disincentive would seem to be stronger; these sell at a lower price, and have a poor market. Non – voting shares are useless for takeover purposes.

You can leave a response, or trackback from your own site.

Leave a Reply

You must be logged in to post a comment.

Powered by WordPress