shares that grant special rights
example lower saxony and volkswagen
The German federal state of Low- er Saxony held such shares in Volkswagen, for example, giving it the right to nominate members of the supervisory board and providing for a voting cap of 20 percent (this means that no shareholder can exercise more than 20 percent of the votes even if she/he holds more shares). This provided Lower Saxony with a disproportionally high degree of influence in Volkswagen. As this made Volkswagen and similar companies less attractive to (foreign) investors
from grabenwarter-et-al-2019-governance-and-legal-environment.pdf