Although under normal operating conditions preferred shareholders do not have voting rights,protective provision generally allow for voting rights in the event of nonpayment of preferred dividends.

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Protective provisions, also known as protective covenants, are included in preferred stock agreements to protect the interests of the preferred shareholders. One common protective provision is the provision that allows preferred shareholders to vote if the company fails to pay preferred dividends. This provision ensures that the preferred shareholders have some control over the company's decision-making process in the event of nonpayment of dividends.

Although Under Normal Operating Conditions Preferred Shareholders Do Not Have