nonvoting stock

(redirected from Nonvoting Share)

Nonvoting stock

A security that does not entitle the holder to vote on the corporation's resolutions or elections.

Nonvoting Stock

Stock in a publicly-traded company that does not give the holder the right to vote at the company's annual meeting. Nonvoting stock usually has other rights associated with it to compensate for the lack of ability to vote. For example, most preferred stock is nonvoting, but preferred stock has a guaranteed dividend, while most voting stock does not.

nonvoting stock

Stock in which the holder has no vote in the election of directors, the appointment of auditors, or other matters that may be brought up at the annual meeting. Corporations sometimes create a special class of nonvoting stock to restrict corporate control only to certain groups. Most preferred stock is nonvoting. Compare voting stock.
References in periodicals archive ?
At closing, RCI issued one class B nonvoting share of RCI for each 4.
Dividing by NV and rearranging the terms yields the following equation, which examines the relative values as a fraction of the nonvoting share price:
RCI will issue one class B nonvoting share of RCI for 4.
234 of a nonvoting share of Molson Coors, while Molson Class A nonvoting shares will convert into 0.
44 basic earnings per Class A Common Nonvoting Share.
One Series IV senior convertible, preferred, nonvoting share with a par value of $2.
In 1998, a new Italian financial code (Law 58/1998) improved minority shareholder rights and brought two major changes to nonvoting share regulation: 1) nonvoting shareholder rights can be freely set by company bylaws and are no longer subject to the minimum dividend privileges indicated by the original law and 2) proposals deemed harmful to nonvoting shareholders must be approved by a special nonvoting shareholder meeting with the standard majority quorum and a percentage of favorable votes representing at least 20% of the nonvoting equity (as per Article 146, Paragraph 1, Law 58/1998).
The loss amounted to 14 cents for each Class A, nonvoting share for the three months ended Sept.
83 and the fair market value of each class B nonvoting share to be $3,585.
Also, allowing controlling managers to issue nonvoting shares can increase the stock market efficiency, because the reputation effect is stronger when managers can divest more without losing control.
The parent can still control the subsidiary by owning 79 percent of the stock, or by owning 100 percent of the voting stock and issuing a second class of nonvoting shares in which the association has no interest.
All other shareholders, including talk-show host Winfrey, own nonvoting shares of stock.