Differential Voting Rights
Differential Voting Rights (DVRs) are special types of shares issued by companies that provide shareholders with either more or fewer voting rights compared to regular shares. For instance, a DVR share with fewer voting rights may offer higher dividends to compensate for the reduced influence in company decisions. Companies wishing to issue DVR shares must conduct a postal ballot and meet specific regulatory requirements. Additionally, companies typically need a strong financial track record to issue DVR shares, ensuring that they can maintain investor confidence and comply with the rules set by regulatory bodies.
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