What is a Vetoing Stock?
” Vetoing stock is a particular class of stock that allows a limited amount of participation on the part of the shareholder. In general, investors who hold shares of vetoing stock are permitted to vote on many corporate issues, generally with a simple approach of voting for or voting against an issue that is put before the shareholders. However, vetoing stock normally does not include the privilege of participating in the election of a board of directors, or participating in the process to fill a vacancy on the board. . The exact cope or range of privileges extended with vetoing stock may vary somewhat from one company to another.
Vetoing stock is a particular class of stock that allows a limited amount of participation on the part of the shareholder. In general, investors who hold shares of vetoing stock are permitted to vote on many corporate issues, generally with a simple approach of voting for or voting against an issue that is put before the shareholders. However, vetoing stock normally does not include the privilege of participating in the election of a board of directors, or participating in the process to fill a vacancy on the board. The exact cope or range of privileges extended with vetoing stock may vary somewhat from one company to another. Generally, the founding documents for the company will specify the classes of stock that the corporation may issue. Within those specifications, the documents will define the rights and privileges that are extended to investors who hold a given class of stock. In the case of vetoing stock, this will often involve providing information on how and when it is approp
