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Stradling Startup Blog
February 2017

Business owners often inquire about establishing voting and non-voting shares. The primary motivation is a desire to limit the number of people who will be able to influence business decisions. But in the case of California corporations, labeling a category of shares as non-voting doesn’t necessarily take away all the holder’s voting rights.

The California Corporations Code allows corporations to issue one or more classes or series of shares with “full, limited or no voting rights.” Based on existing law, holders of non-voting shares are prevented from voting on routine corporate matters, such as the election of directors. Read more.