Voting Shares: Definition, Types, and Examples

What are voting shares?

Voting shares give stockholders the right to vote on corporate matters that shape a company’s direction—most commonly the election of the board of directors and approval of major transactions (for example, mergers or sale of the company). Common stock typically carries voting rights; some preferred stock classes and specially issued shares may not.

Key takeaways

• Voting shares let investors influence corporate policy and decisions.
• Shareholders with voting rights approve or reject major corporate actions.
• Companies can issue multiple share classes with different voting powers, including non‑voting shares.
• Examples of multi‑class structures include Alphabet (Google) and Berkshire Hathaway.

How voting shares work

Holders of voting shares receive notices and ballots for matters requiring shareholder approval. Casting a vote does not change a shareholder’s ownership percentage, but the outcomes of votes can materially affect a company’s governance, strategy, and market value.

Voting can be driven by:
* Routine governance (electing directors, ratifying auditors).
* Major corporate actions (mergers, dissolutions, amendments to charter).
* Activist campaigns or takeover attempts seeking shareholder support to change management or direction.

Special considerations

• Activist investors may solicit votes to push strategic changes or remove board members.
• In hostile bids, bidders may seek to win over voting shareholders to gain control.
• Shareholders can reject offers they believe undervalue the company, blocking sales or structural changes.

Types of voting shares

Companies commonly use different share classes to allocate voting power:
* Single‑vote shares: each share carries one vote.
* Super‑voting shares: certain classes (often held by founders or insiders) carry multiple votes per share, concentrating control.
* Non‑voting shares: issued for capital raising while minimizing dilution of control.
* Variable classes: companies may design classes with different voting rights for specific stakeholders (founders, employees, public investors).

These differences can affect both governance and market value; shares with greater voting power often command a premium for control, while non‑voting shares may trade at a discount.

Examples

• Alphabet (Google): Class A shares (GOOGL) have voting rights; Class C shares (GOOG) are non‑voting. Class B shares (not publicly traded) are held by insiders and carry super‑voting rights (each Class B share counts for multiple votes).
• Berkshire Hathaway: Class A shares (BRK.A) have full voting rights and trade at high prices. Class B shares (BRK.B) are more affordable for investors but carry proportionally much less voting power.

Investor considerations

When evaluating stocks, consider whether voting rights matter for your goals:
* If influence or corporate governance is important, prefer shares with voting rights.
* If you prioritize economic exposure and liquidity over control, non‑voting or lower‑vote shares can still be suitable.
* Understand the company’s share structure and how it affects the balance between control and market ownership.

Conclusion

Voting shares determine who controls corporate decisions and can materially affect a company’s future. Share classes with differing voting powers allow companies to raise capital while preserving control for founders or insiders. Investors should weigh the importance of control alongside valuation and liquidity when choosing between voting and non‑voting shares.