
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.