Golden Share

A type of share that gives its shareholder veto power over changes to the company's charter. A golden share holds special voting rights, giving its holder the ability to block another shareholder from taking more than a ratio of ordinary shares. Ordinary shares are equal to other ordinary shares in profits and voting rights. These shares also have the ability to block a takeover or acquisition by another company.

These shares were most popular during the 1980s with governments who wanted to maintain control over privatized companies. Golden shares are used mainly in the United Kingdom. In the European Union however, golden shares have been deemed illegal by the government. This type of share controls at least 51% of voting rights.

A company can only issue golden shares after passing special resolutions and changing their Memorandum and Articles of Association. This document governs or dictates a company's relationship with outside businesses.

Investment dictionary. . 2012.

Look at other dictionaries:

  • Golden Share — La Golden Share ( action spécifique ) permet à celui qui la détient de conserver un droit de veto sur l ensemble du capital d une société dans certaines circonstances spécifiques. Elles sont souvent détenues par un État dans le cas d une… …   Wikipédia en Français

  • golden share — ➔ Share * * *    A share that confers sufficient voting rights in a company to maintain control and protect it from takeover. The golden share prevents potential predators from buying shares and then using them to outvote the company s existing… …   Financial and business terms

  • golden share — noun A large share in a company, etc held by an institution or (often) a government, which prevents takeover by another company • • • Main Entry: ↑golden * * * golden share UK US noun [countable] [singular golden share …   Useful english dictionary

  • golden share — A single special rights redeemable preference share (preference shares) in a company held by a government minister, whose consent is required for, among other things, material disposals, share issues or a voluntary winding up. Related links… …   Law dictionary

  • Golden Share — A Golden Share is a nominal share which is able to outvote all other shares in certain specified circumstances, often held by a government organization, in a government company undergoing the process of privatization and transformation into a… …   Wikipedia

  • Golden share — La golden share (« action spécifique ») permet à celui qui la détient de conserver un droit de veto sur l ensemble du capital d une société dans certaines circonstances spécifiques. Elles sont souvent détenues par un État dans le cas d… …   Wikipédia en Français

  • golden share — UK / US noun [countable] Word forms golden share : singular golden share plural golden shares business British a share that is owned by the government in a private company which allows the government to control what the company does after it has… …   English dictionary

  • Golden Share — Inhaber so genannter „Goldener Aktien“ (engl. golden shares ) verfügen in einem Unternehmen über Rechte, die über die der übrigen Aktionäre weit hinausreichen. Im Normalfall stehen jene Befugnisse die zumeist bei der Privatisierung großer… …   Deutsch Wikipedia

  • golden share —   La golden share o azione d oro è un pacchetto azionario posseduto dal governo che permette di intervenire nelle decisioni più importanti di una società privatizzata garantendo al possessore poteri speciali, indipendenti dal numero di azioni in… …   Glossario di economia e finanza

  • golden share — A share in a company that controls at least 51% of the voting rights. A golden share has been retained by the UK government in some privatization issues to ensure that the company does not fall into foreign or other unacceptable hands …   Accounting dictionary

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