Priority share / priority stocks

Priority share The portion of registered capital of a private or public limited company
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shares
( share The portion of registered capital of a private or public limited company
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stocks
) are shares (stocks) with special control rights. For example the right make a binding nomination A nomination for a board director done by another body than the shareholders' meeting
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binding nomination
to the board or the supervisory board, or a veto right.

The nature of the control rights that are given to a priority share The portion of registered capital of a private or public limited company
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share
holder are defined in the articles of association A document, drawn up when a Dutch company or legal person is set up, and which regulates the operations of the company and defines its purpose.
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Articles of Association
. Priority shares (stocks) are often used in the Netherlands to prevent a hostile takeover.

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