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Does NASDAQ have a voting rights rule?

April 26, 2017NASDAQ Rights rule voting

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Does NASDAQ have a voting rights rule?

1 Answer

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Yes. Under Listing Rule 5640, a company cannot disparately reduce or restrict existing shareholders’ voting rights. Examples of such corporate action or issuance include the adoption of “time-phased” or “capped” voting rights plans, the creation of a new class of super-voting stock, or the issuance of stock with voting rights less than the per share voting rights of the existing common stock through an exchange offer.