nonvoting stock

(redirected from Nonvoting Shares)

Nonvoting stock

A security that does not entitle the holder to vote on the corporation's resolutions or elections.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

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.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.
References in periodicals archive ?
Critics argue that nonvoting shares perpetually insulate corporate insiders from influence and oversight, and therefore increase agency costs.
To join the Novo Mercado (NM), on top of Level 2 requirements, firms cannot issue nonvoting shares, indicating strong commitment to high-level governance practices.
If Snap, Google and Facebook offer nonvoting shares, perhaps we want nonvoting citizens.
At the time of her death, the decedent owned 81% of the voting stock in the corporation and 84% of the nonvoting shares. One son, who wore many hats within the family, including trustee, corporation president, and private foundation trustee, owned the balance of the voting shares and co-owned, with his brother, the balance of the nonvoting shares.
A way to eliminate most of the compliance costs and distortionary impact of the corporate income tax, while still getting an equivalent amount of revenue for the government, would be to allow companies to grant an amount of nonvoting shares of stock (e.g., between 15 and 30 percent) to the government.
Nissan owns 15% of nonvoting shares in Renault, Renault owns 40% of voting shares in Nissan and the French government owns 20% of Renault.
The vote had been delayed three times over the past few months, amid fierce opposition from some shareholders led by billionaire investor Carl Icahn, who called the plan a "giveaway." But after a modified voting process was approved to exclude nonvoting shares from the tally, Icahn acknowledged defeat this week.
It also shrinks the procedural costs for cross-border voting (Zetzsche, 2008), but it does not address the conflict of interest in shareholder meetings and dual-class voting, although all EU countries are characterized by either multiple voting shares or nonvoting shares. (1)
In a filing to the Bursa Malaysia, the local stock exchange, AirAsia said that in compliance with Japanese aviation laws on foreign shareholdings, AirAsia will hold 33 percent of voting shares and 16 percent of nonvoting shares in the joint venture to be known as AirAsia Japan.
In addition, studies show that voting shares of publicly traded companies sell at a higher price than nonvoting shares (William A.