Company law - nil voting rights

This query is : Resolved

Sanket Shah (Querist)
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22 December 2011 Can private company issue shares with Nil Voting rights? Only participation is required for dividend and other matters other than voting rights.

Charu Srivastava

Charu Srivastava (Expert)
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22 December 2011 Equity Shares can be issued
1). Voting rights
2). with differential rights as to dividend,voting or otherwise

Shares with differential voting rights are shares which ‘carry’ more votes than ordinary shares. They have been allowed in India since 2001

So private company cannot issue equity with nil voting rights.

preference shares can be issued because they carry nil voting rights.