Voting Rights - Preferred Shares

The video tutorial explains the differences in voting rights between common and preferred shareholders. It highlights that while common shareholders typically have voting rights, preferred shareholders may also have them under certain conditions. The tutorial discusses common provisions allowing preferred shareholders to vote alongside common shareholders, and other provisions granting them specific voting rights for board elections or corporate actions. It also covers legal limitations, particularly in states like California, ensuring that preferred shareholder rights do not diminish those of common shareholders.

What is a common feature that distinguishes common shareholders from preferred shareholders?

• Dividend rights

• Stock price

• Board membership

• Voting rights

How can preferred shareholders sometimes vote alongside common shareholders?

• By holding more shares

• By paying a fee

• Through a conversion ratio

• By attending more meetings

What is one of the additional voting rights that might be attached to preferred shares?

• The ability to change company policies

• The ability to elect specific seats on the board

• The right to veto any board decision

• The right to issue new shares

What is a notable limitation on the voting rights of preferred shareholders?

• They have no rights in board elections

• They cannot eliminate the voting rights of common shareholders

• Their rights can diminish those of common shareholders

• They cannot vote on any company matters

Which state is mentioned as having specific laws protecting the voting rights of common shareholders?

• California

• Florida

• New York

• Texas