Golden Vote
A rare voting structure where a specific shareholder has a decisive vote in key decisions, often used to maintain control post-acquisition.
Implications
A special voting right that allows a shareholder or group of shareholders to exercise disproportionate influence over corporate decisions, often used to maintain control of a company or protect certain interests, typically seen in companies with dual-class share structures.
Example
Example: The founder of a tech company holds a golden vote, giving them ten times the voting power of ordinary shareholders, ensuring they retain control over strategic decisions despite owning a minority of the shares.
Related Terms
Different from a golden share, which typically grants veto power over specific decisions, a golden vote enhances the overall voting power of its holder, often leading to greater control over the company�s direction.
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