Q&As

Is it possible to provide that one class of shares shall carry enhanced voting rights? If so, can this be expressed as a fixed percentage of the total voting rights that will stay the same irrespective of the number of shares in issue?

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Produced in partnership with Kirstin Gilbert and Alex McPherson of Ignition Law
Published on LexisPSL on 27/06/2016

The following Corporate Q&A produced in partnership with Kirstin Gilbert and Alex McPherson of Ignition Law provides comprehensive and up to date legal information covering:

  • Is it possible to provide that one class of shares shall carry enhanced voting rights? If so, can this be expressed as a fixed percentage of the total voting rights that will stay the same irrespective of the number of shares in issue?

Is it possible to provide that one class of shares shall carry enhanced voting rights? If so, can this be expressed as a fixed percentage of the total voting rights that will stay the same irrespective of the number of shares in issue?

This Q&A deals with the question of whether it is possible to provide that one class of shares in a company shall carry enhanced voting rights. It also considers whether these voting rights can be expressed as a fixed percentage of the total voting rights, that will stay the same irrespective of the total number of shares in issue.

We have limited this answer to cover Private Companies Limited by shares (with just a reference to listed entities).

Section 284 of the Companies Act 2006 (CA 2006) provides that the shareholders of a company have one vote on a show of hands and one vote per share held on a poll or written resolution.

This, however, is expressly subject to any

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