12.6.9 (Non-voting shares)

'Non-voting shares' as the term suggests are shares which carry no voting rights. These are contemplated as altogether a different class of shares which may carry additional dividends in lieu of the voting rights. Although the idea was first mooted in 1987, it was only in early 1994 that the Finance Ministry announced certain broad guidelines in this regard. Accordingly, the companies (Amendment) Act, 2000 now provides for issue of such type of equity shares under s.86.