Voting And Non-voting Shares Distinguished
Shares of stock may be classified into voting and non-voting shares by the stock books. Voting shares is shares with the right to vote. A share with a right to vote means that the owner of such shares is given the power to participate in the management of the corporation by exercising this prerogative during the meetings or in cases where it is required. This is usually given to common stocks.
Non-voting shares are those where the voting rights are withheld. These are usually preferred or redeemable shares. Be it noted that if stocks are originally issued as a voting stock, it may not thereafter be deprived of the right to vote without the consent of the holder.
Even if it is a so-called non voting share, it still has the power to vote in certain instances provided by law. Advantages of the two shares depend on the willingness of the investor to take part in the management of the corporation. More or less the income is just the same depending on how much shares one has. Non-voting shares however, enjoys more benefits that those with voting rights.
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