contingent voting rights

Contingent Voting Rights

Voting rights that go to a shareholder or other stakeholder who does not ordinarily have them. For example, a shareholder may receive contingent voting rights in the event that the company does not fulfill obligations that it promised the shareholder it would fulfill. Contingent voting rights are agreed between the company and the shareholder or stakeholder.

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.
References in periodicals archive ?
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.(13)
Contrary to the taxpayers' claims, the objectionable action provision did not give the Mitsui Group merely additional contingent voting rights; the provision gave the Mitsui Group the legally enforceable right to negate the exercise of the power of the Alumax board on any director nonrestricted matter which the Mitsui Group believed could materially and adversely affect the value of its investment in Alumax.
Does Alumax bar "bankruptcy-proofing" and special voting rights?
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