Many companies issue shares with differential voting rights, deviating from the one-share one-vote principle.

Question

Quizplus · Accepted Answer

By accumulating superior voting shares, investors can acquire control rights exceeding cash flow rights. This means that an investor can have more control over the decisions of the company, despite having a smaller overall investment in terms of cash flow. Option A is incorrect as it suggests that an investor's cash flow rights could exceed their control rights, which is not the case with differential voting rights. Option B is incorrect as there is no set ratio for the pricing of voting shares versus non-voting shares.

Many Companies Issue Shares with Differential Voting Rights, Deviating from the One-Share