abstract:Non-voting stock is stock that provides the shareholder very little or no vote on corporate matters, such as election of the board of directors or mergers. This type of share is usually implemented for individuals who want to invest in the company’s profitability and success at the expense of voting rights in the direction of the company.
Now, the company has proposedathree-to-one stocksplitinitsquarterly results, whichwouldgiveeachFacebookshareholdertwoadditional, non-votingshares for each singleshare they alreadyhold.
The parents may want to recapitalize the business to create voting and non-voting stock, or they may want to put restrictions on the transferred stock.
Other defensive measures, such as converting non-voting shares into common stock, and paying a special dividend, also look reassuringly shareholder-friendly.