Open Your Free Demat Account
Enjoy low brokerage on delivery trades
Notification
![close image]()
No new Notification messages
Seshaasai Technologies Ltd IPO
Apply for the Seshaasai Technologies Ltd IPO through UPI in Just minutes
Start your SIP with just ₹100
Choose from 4,000+ Mutual Funds on Bajaj Broking
Open a Free Demat Account
Pay ZERO maintenance charges for the first year, get free stock picks daily, and more.
Trade Now, Pay Later with up to 4x
Never miss a good trading opportunity due to low funds with our MTF feature.
Track Market Movers Instantly
Stay updated with real-time data. Get insights at your fingertips.
What Are Voting Shares and Why They Matter to Shareholders?
By Bajaj Broking Team
December 01, 2025
5 mins read
News
There are many ways to categorise and classify the shares that are available in the stock market, based on the privileges, rights and benefits that they offer. Shares can be classified by the voting rights they give investors. Voting shares provide voting rights to the shareholders and grant them the right to voice their opinion in matters of policymaking within the company. These shares are different from non-voting shares, which do not confer such a right to their holder.
Read on to know more about this, how they work, an example of such shares and their advantages and limitations.
What are Voting Shares?
Voting shares are a class of stocks that allow you, as a shareholder, to vote on important company matters. Your vote represents your ownership stake. Usually, one share equals one vote. So, if you own more shares, you have more influence during shareholder meetings.
These meetings—often the company’s Annual General Meetings (AGMs)—give you a chance to approve or reject proposals, appoint directors, or even decide on mergers and acquisitions.
Equity shares are the most common example of shares with voting rights; however, not all equity shares have full voting rights. As an example, Differential Voting Rights (DVR) shares have limited or no voting rights. No other type of shares offers this special feature other than equity shares.
How Do Voting Shares Work?
When you possess voting shares in a company, you will have the opportunity to express your opinion on certain important decisions affecting the company. Typically, this occurs at a shareholder meeting. You may vote in person, by proxy, or online, as many companies have commenced offering online voting.
Some of the key matters you can vote on include:
Appointing directors and auditors
Deciding remuneration for senior management
Approving mergers, acquisitions, or buybacks
Altering the share capital structure
You’re not required to vote, of course. If you choose not to, your ownership remains the same. But remember — you can’t transfer your voting right to another person. It’s tied to you as the shareholder.
When you use your vote, you help shape the direction of the company you’ve invested in.
Types of Voting Shares
Not all voting shares are the same. Depending on how a company is structured, there may be different kinds of shares you come across.
Some companies have common shares, and that gives one vote per shareholder/share. Some companies have dual-class shares, which are classes that give higher voting power than others.
These are sometimes used to allow founders to maintain some control over the company's voting shares, even though they own fewer shares overall.
DVR (Differential Voting Rights) shares limit voting rights but instead provide a higher dividend payout. It’s important to understand what type of voting share you hold, as the rights and privileges attached to it can significantly differ.
Why are Voting Shares Important?
Voting shares are a crucial component of a company’s share capital structure. They represent ownership and provide the holders with certain privileges and rights. Here are some reasons why these shares are considered to be very important for the seamless functioning of a company.
This enables its holders to participate in the decision-making process, enabling them to ensure that the company is managed in a way that’s in line with their interests.
Provide shareholders with the power to hold a company accountable for their actions.
Provide minority shareholders with the power to protect their interests from being overshadowed by much larger shareholders.
Allow the holders to propose resolutions and suggest changes for the ultimate benefit of the company.
Additional Read: What is a Share Class?
An Example of Voting Shares
Imagine you own shares in ABC Limited, which has issued 10,000 equity shares with voting rights and 20,000 preference shares. You hold 1,000 equity shares and 2,000 preference shares.
During the Annual General Meeting, the company proposes to appoint a new director and increase its authorised share capital. Since each equity share equals one vote, you get 1,000 votes.
Your preference shares, however, don’t carry any voting rights. The decision passes only if more than half of the voting shareholders—51% or more—approve the resolutions.
This example shows how your voting shares determine the extent of your influence within the company.
Advantages of Voting Shares
Voting shares provide their holders with multiple benefits. Here is what these shares have to offer to you:
These shares make you eligible for dividends in the form of bonus shares or cash payments, subject to company policy.
These shares allow you to participate in the decision-making process of the company.
Limitations of Voting Shares
Like all investments, voting shares come with their limitations. You should be aware of these before investing.
Dividends are not promised to shareholders or voting shareholders.
If a company goes bankrupt, voting shareholders are the last to receive distributions in the liquidation process.
Companies are careful about the number of voting shares outstanding, ensuring they do not allow shareholders' ownership interest to fall below a target level.
So while voting shares allow for some influence, they do come with a certain level of risk of dividends being reduced or ultimately eliminated.
Conclusion
When you possess voting shares, you are not simply owning an investment — you can influence your company's future. Taking the opportunity to vote in annual general meetings (AGMs) is a way of ensuring your agenda is prioritised as a shareholder.
As virtual AGMs are becoming more commonplace, you can now vote online and have not given up your opportunity to participate.
If you’re planning to invest for the long term, owning voting shares can give you both growth potential and control. You only need an open demat account to hold these shares in a safe way.
With a demat account from Bajaj Broking, you can hold, manage, and track your shares electronically — all while securely participating in corporate decisions and keeping in touch with your investments.
Share this article: 
Read More Blogs
Disclaimer :
The information on this website is provided on "AS IS" basis. Bajaj Broking (BFSL) does not warrant the accuracy of the information given herein, either expressly or impliedly, for any particular purpose and expressly disclaims any warranties of merchantability or suitability for any particular purpose. While BFSL strives to ensure accuracy, it does not guarantee the completeness, reliability, or timeliness of the information. Users are advised to independently verify details and stay updated with any changes. The securities are quoted as an example and not as a recommendation. Past performance is not necessarily a guide to future performance.
The information provided on this website is for general informational purposes only and is subject to change without prior notice. BFSL shall not be responsible for any consequences arising from reliance on the information provided herein and shall not be held responsible for all or any actions that may subsequently result in any loss, damage and or liability. Interest rates, fees, and charges etc., are revised from time to time, for the latest details please refer to our Pricing page.
Neither the information, nor any opinion contained in this website constitutes a solicitation or offer by BFSL or its affiliates to buy or sell any securities, futures, options or other financial instruments or provide any investment advice or service.
BFSL is acting as distributor for non-broking products/ services such as IPO, Mutual Fund, Insurance, PMS, and NPS. These are not Exchange Traded Products. For more details on risk factors, terms and conditions please read the sales brochure carefully before investing.
Investments in the securities market are subject to market risk, read all related documents carefully before investing. This content is for educational purposes only. Securities quoted are exemplary and not recommendatory.
For more disclaimer, check here : https://www.bajajbroking.in/disclaimer
Our Secure Trading Platforms
Level up your stock market experience: Download the Bajaj Broking App for effortless investing and trading
+91
|
Please Enter Mobile Number
Open Your Free Demat Account
Enjoy low brokerage on delivery trades
+91
|
Products
Calculator
Mutual Funds & SIP
Important Links
Corporate
Popular Stocks
Indian Indices
Global Indices
Sector Wise Stocks
BAJAJ BROKING
Download App Now
Follow Us :
Useful Links
