Voting vs. Non-Voting Shares

Voting Shares

Holders of voting shares are entitled to receive notice of and vote on certain decisions. They are the most common shares issued at the time of incorporation. Voting shareholders must make certain decisions annually, such as approving financial statements.

Non-Voting Shares

Holders of non-voting shares cannot vote on most decisions, but may vote on certain prescribed decisions such as waiving the audit requirement and selling substantially all of the corporation’s assets.

Unanimous Shareholder Agreement

If shareholders want to modify the level of control given to one or more shareholder, it is generally best to enter into a Unanimous Shareholder Agreement. This sets out the various rights and responsibilities and can modify how certain decisions are made, such as appointing directors, paying dividends, and entering into major contracts.