Voting Right

In finance, the term voting right refers to the right granted to the shareholders of corporations and joint stock companies to vote on key corporate matters. Voting rights may include the right to vote during the election of corporate directors and the right to vote on proposed changes to corporate policies.

The term is most commonly used in relation to the rights enjoyed by holders of voting shares in public companies. The higher the portion of a company’s voting shares are held by a shareholder, the greater that shareholder’s voting rights are and the greater the weight of their votes on corporate matters.

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Daniel Dreier is editor and personal finance expert at moneyland.ch.

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