share with differential voting right

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Malobika Ghosh

112 Points Joined January 2019

when share with differential voting right issue by company ?

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Differential voting right (DVR) shares are same as ordinary equity shares except such stock does not dilute the promoters voting rights and makes it difficult for hostile takeovers.

Source: https://bit.ly/2kjDF4R

As per Section-47 read with Rule-4 of Companies ( Shares and Debentures) rules, A company may issue Shares with differential voting rights provided it has not committed any default in various laws mentioned in the said rule OR Five years have elapsed since such default was made good.