limited-voting stock

limited-voting stock definition - business

limited-voting stock

A class of stock that provides its holders with smaller than proportionate voting rights in comparison with another class of stock issued by the same firm. Limited-voting shares allow another class of stock effectively to control the election of a firm's directors, even though the limited-voting shareholders may have contributed a majority of the firm's equity capital. Compare supervoting stock.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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