Issuing non-voting stock

The issuer of corporate stock can place voting restrictions on any type of stock, including common and preferred shares.

In the case of a Sub Chapter S corporation, which by law is prohibited from having multiple classes of ownership, non-voting common stock is not considered a second class of stock.

Other ways to enable people to participate in corporate ownership without giving them voting rights would be awarding stock appreciation rights (SARs).

Be sure to talk with your legal advisor about how to structure voting rights for your specific situation.