Golden Share
A special share that gives its holder (often a government) veto power over key decisions, used to retain control over certain decisions after an M&A transaction.
Implications
A type of share that gives its holder special powers, typically the right to veto certain company decisions, often used by governments to retain control over privatized companies or key industries, even after selling off other shares to private investors.
Example
Example: A government retains a golden share in a formerly state-owned energy company, allowing it to block any foreign takeover attempts that could threaten national security or energy independence.
Related Terms
Different from ordinary shares, which provide voting rights proportional to the number of shares owned, a golden share provides unique control rights, often to a single shareholder, such as a government entity.
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