voting rights

Intermediate 🚀 Startup / VC

Definition

The power to vote on corporate matters, typically held by common stock and sometimes special classes of preferred stock. Theoretically democratic, practically controlled by whoever wrote the term sheet.

Example Usage

We have voting rights proportional to ownership, which sounds fair until you realize the VCs have supervoting shares.

Origin

Corporate law concept dating back to early joint-stock companies in the 17th century

Fun Fact

Dual-class share structures allowing founders to maintain voting control while owning minimal equity became controversial after Snap's IPO with zero-vote public shares.

Source: Corporate governance and securities law

Related Terms

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See “voting rights” in Corporate Speak, Gen-Z Slang, Pirate Speak, and more.

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