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Enfranchisement
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Enfranchisement. The granting to holders of non-voting shares the right to vote in future.
Few non-voting issues remain in the London market, most have been enfranchised in recent years. However, non-voting shares remain common in a number of continental markets.
Not being able to vote means you can play little role in putting right problems with the management of a company if things go wrong. You can go to the Annual General Meeting (AGM) or an Extraordinary General Meeting (EGM) and make a noise, but that's all you can do, short of selling your shares.
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Last Updated: June 2007 © Moneyextra.com
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