Differential Voting Rights (DVR) decoded


DVRs

 

All you wanted to know about DVRs

 

Shares with Differential Voting Rights (DVRs) means shares that give the holder differential rights as to voting (either more or less voting right) as against the Ordinary shareholders of the company.

 

Shareholders being the owners of a company have a right to vote and thereby participate in the Management of a company. In India where most of the businesses are family owned, voting rights represent the only means by which an alignment of interest between the owners (promoters) and shareholders can be effected.

 

The issue of DVRs can result in two types of shares:

 

1)      Shares that have superior voting rights.

2)      Shares that have inferior voting rights but offer higher dividends or are offered at a discount.

 

Read the Full Details on DVRs including :

  • Existing Regulations (Global and Indian)
  • Issue of DVRs by Tata Motors
  • Issue of DVRs by Pantaloons
  • Changes made by SEBI
  • Further DVR issues
  • New Companies Bill 2009
  • Advantages of issue of DVRs:
  • Disadvantages of issue of DVRs:
  • Road Ahead

 

The full article can be downloaded from this link: DVRs – Differential Voting Rights