Question

why would a group of investors be interested in a guarantee of class voting?

why would a group of investors be interested in a guarantee of class voting?

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Answer #1

Class voting is a form of shareholder voting in which different classes of shares are voted with regards to fundamental corporate changes that might affect their rights in an adverse manner.

A group of investors will be interested in a guarantee of class voting so that they will be able to ensure that their rights and privileges remain protected and are not adversely affected by certain corporate changes.

Guarantee of class voting provides the investors with voting power besides the equity power that they already have. Thus guarantee of class voting enables investors to monitor the management and ensure that the managers of a company runs the company keeping in mind the best interest of the investors and the shareholders.

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