An employee stock ownership plan denies employees the right to participate in votes by shareholders even if the stock is registered on a national exchange.

Question

Quizplus · Accepted Answer

Employees who participate in an employee stock ownership plan (ESOP) do have the right to vote their shares on issues such as the election of board members and other corporate matters. However, there may be restrictions or limitations on the voting rights depending on the specifics of the ESOP.

An Employee Stock Ownership Plan Denies Employees the Right to Participate