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Voting Right

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Definition of 'Voting Right'

The right of a stockholder to vote on matters of corporate policy and who will make up the board of directors. Voting often involves decisions on issuing securities, initiating corporate actions and making substantial changes in the corporation's operations.
Investopedia Says

Investopedia explains 'Voting Right'

Shareholders do not necessarily need to be physically present at the site of the company's annual meeting in order to exercise their right to vote. It is common for shareholders to voice their vote by proxy by mailing in their response. Unlike the single vote right that individuals commonly possess in democratic governments, the number of votes that a shareholder has corresponds to the numbers of shares that he owns. For example, a shareholder that owns 100 shares will have a 100 times more sway than a shareholder that owns a single share.

Related Definitions

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    Cumulative Voting

    The procedure of voting for a company's directors; each shareholder is entitled one vote per share times the number of directors to be elected. This is sometimes known as 'proportional ...
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  • Preferred Stock

    A class of ownership in a corporation that has a higher claim on the assets and earnings than common stock. Preferred stock generally has a dividend that must be paid out before ...
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  • Proxy Fight

    When a group of shareholders are persuaded to join forces and gather enough shareholder proxies to win a corporate vote. This is referred to also as a proxy battle.
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    • Stockholders' Equity

      The portion of the balance sheet that represents the capital received from investors in exchange for stock (paid-in capital), donated capital and retained earnings. Stockholders' equity ...
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    • Statutory Voting

      The procedure of voting for a company's directors in which each shareholder is entitled to one vote per share. This is sometimes known as straight voting.
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    • Stock Split

      A corporate action in which a company's existing shares are divided into multiple shares. Although the number of shares outstanding increases by a specific multiple, the total dollar ...
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    • Proxy

      1. An agent legally authorized to act on behalf of another party. Shareholders not attending a company's annual meeting may choose to vote their shares by proxy by allowing someone else ...
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    • Common Shareholder

      An individual, business or institution that holds common shares in a company, giving the holder an ownership stake in the company. This will also give the holder the right to vote on ...
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    • Ballot

      The documentation representing a shareholder's decision when a company's ownership group votes on corporate issues. Ballots are usually dispersed at annual meetings, when shareholders ...
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    • Contingent Voting Power

      A provision granting voting rights to preferred shareholders when the company cannot uphold the obligations outlined in the preferred shareholder arrangement. Contingent voting powers ...
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