Supervoting Stock

Supervoting stock - Supervoting stock is also known as control stock. Supervoting stock is a type of common stock, which allows its shareholders the right to have more votes per share, than would be normally be available for shareholders. This way the shareholders can retain their level of control in the company without having to go out and purchase more shares just for the power of the vote that will give the shareholder more clout at the board level for his/her interests in corporate activities. Usually the votes are issued in multiples of 10 but they do not have to be. Giving the insiders this extra power becomes extremely important in times of a hostile takeover and the shareholders can vote against the actions without actually having in their possession more than half of the company shares.