nonvoting stock

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 ?
Although Google, under Delaware law is permitted to issue nonvoting stock, Plaintiffs here claimed that the plan, as enacted, was unfair to Google's public shareholders.
In addition, each shareholder received warrants to purchase from the corporation 10 shares of nonvoting stock for each share of nonvoting stock the shareholder held.
6) The withdrawal price was equal to the arithmetic average of Pirelli nonvoting stock prices in the six months preceding the publication date of the notice calling the extraordinary nonvoting shareholder meeting, as required by Article 2437- ter, Paragraph 3 of the Italian Civil Code.
The decedent bequeathed all of the nonvoting stock to charity, while bequeathing the voting stock with control to his son.
Previ owns 14% of AmBer's nonvoting stock, and 8% of its capital overall.
The holders of the nonvoting stock go uncompensated for the loss they suffer from the rival investor's inefficient management.
said last week that the board of directors approved a recapitalization transaction designed to eliminate all nonvoting stock.
906 (1937), the court of appeals addressed whether the preferred stock issued by Erie Lighting Company (ELC) was voting stock or nonvoting stock for purposes of the applicable consolidation provisions.
The managed health-care company will buy the Class B nonvoting stock from the California Wellness Foundation, a charitable entity created in 1992 to let the company convert its Health Net unit to for-profit status.
9 percent of the total equity in a combination of voting and nonvoting stock.
The transferor may recapitalize the S corporation with voting and nonvoting stock in a tax-free reorganization (a recapitalization) under Section 368(a)(1)(E).
Specifically, Hefner, who owns about 70 percent of the company voting shares and 28 percent of the nonvoting stock, has made it clear that he is not interested in a sale or merger.