Meaning
Differential Voting Rights (DVR) refer to a company’s equity shares that carry varying voting powers compared to standard equity shares.Definition
**Differential Voting Rights (DVR)** are equity shares that grant shareholders disproportionate voting power compared to the number of shares they own. This can mean either higher or lower voting rights than ordinary shares.How It Works
Companies issue DVRs to specific investors or founders, giving them enhanced control (e.g., 10 votes per share) or reduced control (e.g., 0.1 votes per share) while maintaining dividend rights.Benefits
DVRs help promoters retain control with less equity dilution and encourage long-term strategic decisions. They can also attract investors focused on dividends rather than voting power.Author
