Voting Stock

By: Martin M. Shenkman, CPA, MBA, JD

Stock, or ownership interests in a corporation can often vary in many ways. A fundamental manner in which the rights of different shareholders can vary is by voting rights. Its common in a closely held business to have some shares authorized to vote, and other shares not authorized to vote. Even S corporations (corporations with special tax status that permits income and deductions to flow through to the individual shareholders) can vary based on voting rights.

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