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 ?
In Dieringer, the decedent made a specific bequest of voting and nonvoting stock in a closely held corporation to a private foundation she created during her lifetime.
In certain instances the acquiring company can give as part of the consideration, a minor amount of cash, nonvoting stock, securities, or other consideration.
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.
66) In reality though, the Board looks to restrict ownership positions in banks to less than 15%, voting and nonvoting stock combined, and limits ownership stakes further to less than 10% when an investor seeks to appoint a director.
The parents can then recapitalize the business into voting and nonvoting stock.
Here's how it works: A Stock is voting stock and B Stock is nonvoting stock.
Separate classes of voting and nonvoting stock can be used to determine the balance of control and ownership that transfers according to the wishes and timetable of the father.
Where there is a nonvoting class of stock outstanding, it is permissible for the corporation to redeem only the nonvoting stock.
Previ owns 14% of AmBer's nonvoting stock, and 8% of its capital overall.
Voting and nonvoting stock is an alternative for S corporations that cannot have partnerships as shareholders.
The holders of the nonvoting stock go uncompensated for the loss they suffer from the rival investor's inefficient management.