Non-Voting Shares
Content
Definition
Non-Voting Shares are shares that grant the shareholder equity in a company but do not grant voting rights in shareholder meetings.
Usage and Context
Frequently asked questions
- What is the confidentiality clause in an NDA? A confidentiality clause in an NDA requires parties to keep shared information private and not disclose it to others.
- What is the purpose of the NDA? The purpose of an NDA is to protect sensitive information shared between parties and ensure it remains confidential.
- What is the indemnity clause of the NDA? The indemnity clause in an NDA ensures that one party will compensate the other if there are losses due to a breach of the agreement.
Benefits
Non-voting shares help companies raise funds without losing control. Shareholders benefit from company profits without influencing decisions.
Conclusion
Non-voting shares let companies get capital while keeping control. Shareholders enjoy financial gains but do not have a say in company decisions.