Voting rights

Venture capital investors will have certain consent and voting rights that attach to their class of shares (see Protective provisions and consent rights (class rights)). Preferred shares may have equivalent voting rights to ordinary shares in a general meeting, though it is also possible that they may carry more than one vote per share under certain circumstances in jurisdictions where it is allowed.

Where an appropriate event has occurred that triggers a change in the conversion ratio, the number of votes that the investors' shares will carry for any subsequent general shareholder vote will often be automatically adjusted to reflect the change in the conversion ratio at the time of the vote.

If you have any questions on this article or would like to propose a subject to be addressed by Synapse please contact us.

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Howard Palmer

Howard is a partner in the corporate technology group.

Angus Miln

Angus is a partner in the corporate technology group.