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Voting Rights for Business Owners

Individuals and legal entities that own interest in businesses find it relatively easy to separate the various rights that ownership in an entity represents. One example of such a division is the transfer of voting rights in common stock from the individual owner of the common stock to another party. This can be done by a proxy. Or, the voting rights for the owner/partners may be allocated in a limited partnership agreement. Notwithstanding the legal mechanism for a division of a voting right, when a party is relieved of such a right, the value of the party’s ownership interest diminishes.

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