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voting rights and ownership interest

Forums › ACCA Forums › General ACCA Forums › voting rights and ownership interest

  • This topic has 1 reply, 2 voices, and was last updated 12 years ago by mrjonbain.
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  • March 26, 2014 at 4:09 am #163100
    foonghui
    Member
    • Topics: 1
    • Replies: 0
    • ☆

    What is the difference between voting rights and ownership interest? Or they are actually same ?

    March 31, 2014 at 10:53 am #163751
    mrjonbain
    Moderator
    • Topics: 6
    • Replies: 2600
    • ☆☆☆☆☆

    If a company’s equity consists only of ordinary share capital of one class of share then voting rights will be proportionate to ownership interest. However, it is possible to issue different classes of share which may not have voting rights ,or may have restricted voting rights, if the constitution of the company has been drafted to allow the creation of such different classes of share. This may be done to maintain voting power of existing shareholders while raising equity capital through issue of share classes without same voting powers as existing share class or classes.

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