Voting Rights

Voting rights

The right to vote on matters that are put to a vote of security holders. For example the right to vote for directors.

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Voting Right

The right of some shareholders to participate in the company's decision making process, especially at the annual meeting or at other special meetings. Some decisions, such as friendly takeovers or whether to make a new issue, must be put to shareholder votes, though the list of what decisions are included varies by company. Because voting rights give these shareholders the most control over the company, other shareholders are compensated with benefits, such as guaranteed dividends. See also: Voting stock.

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voting rights

The type of voting and the amount of control held by the owners of a class of stock. See also cumulative voting, majority voting, nonvoting stock, proxy, supermajority provision.