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contingent voting rights

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contingent voting rights
The entitlement to vote in a corporate election in the event of certain prescribed events. For example, owners of preferred stock may obtain the right to vote for a firm's directors in the event that preferred dividends are not paid.
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The taxpayers contended that this provision should be ignored because it created only a contingent right to acquire additional voting power, which is comparable to the contingent voting rights held by the preferred stockholders in Erie Lighting.
Does Alumax bar "bankruptcy-proofing" and special voting rights? by Lipton, Richard M. / Tax Executive
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