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Katherine Whitehorn

Investment Dictionary


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Voting Right

 

A voting right is a right provided by every common stock to participate in a shareholders’ meeting and vote for the decisions as management election, audit company election and other important questions. Usually, if there are no special shares, one share represent one vote, and shareholders that have the most of the shares have the control over company’s management.  

 

Voting right plays a key role in a corporation structure and voting rights gets especially important during hostile takeover when there is no strong shareholder at the company that would have enough of shares to make decisions alone.

 






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