Can I issue shares without voting rights?

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I would like to know whether it’s okay to issue shares without giving an individual voting rights? The reason is as follows: someone is prepared to commit capital to my company, and would like shares in return. I think that’s fine. But I don’t want them to have a say in how my company is run. Does that make sense? I would just like to know if it’s possible, really.

Answers

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Yes, you can. If you want to issue shares without voting rights to certain shareholders, you can issue non-voting ordinary shares or preference shares.

Non-voting ordinary shares provide only dividend rights and capital rights to the shareholder - they do not have the right to cast votes on any business affairs. This means the shareholder can enjoy profit distribution in relation to their shareholdings, but the shareholders with voting shares retain control of the company and the authority to make decisions on how the business operates.

Preference shares allow the shareholder to receive a fixed percentage of profits before any profit distribution is made to the shareholders of other types of shares.

a year ago
 

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