Can a pvt. co. issue shares with no voting rights

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

19 July 2013 Can a Private Company Issue Equity Shares with no Voting Rights??
The Company was incorporated in 2012.

Thanks and Regards

Ajay Mishra

Ajay Mishra (Expert)
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19 July 2013 Voting Rights on Shares:

Section 87 of the Companies Act, 1956 deals with voting rights and following are the provisions in this regard:—
(a) Voting rights of equity shareholders.—Every member of a company limited by shares and holding any equity share capital therein shall have a right to vote, in respect of such capital, on every resolution placed before the company. [Section 87(1)(a)]
(b) Voting rights on poll.—Voting right of every member on the poll shall be in proportion to his share of the paid up equity capital of the company. [Section 87(1)(b)]
However, section 87 is not applicable in case of an independent private company. [Section 90(2)]

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