Contingent Voting Power

外汇网2021-06-19 13:32:26 137

A provision granting voting rights to pferred shareholders when the company cannot uphold the obligations outlined in the pferred shareholder arrangement. Contingent voting powers offer the shareholders additional security for holding pferred instruments.

Taobiz explains Contingent Voting Power

With pferred stock, the primary source of income is generated from pidends because capital appciation is minimal. Contingent voting powers may come into effect when the firm fails to make the pidend, eliminating the revenue of the pferred group. Armed with the power to vote, pferred shareholders may seek to remedy the financial difficulties that are restricting pidends by voting in new directors.

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