golden share

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golden share

n
(Banking & Finance) a share in a company that controls at least 51% of the voting rights, esp one retained by the UK government in some privatization issues
References in periodicals archive ?
He claimed it confirmed the golden shares were not with the club's trading arm Coventry City Football Club (Holdings) Ltd, as the club appears to claim.
It also argued that the scheme does not apply to companies already privatised in which the state holds golden shares, but to strategic undertakings that have not yet been privatised.
The EU Court of Justice thus remained totally in line with its established case law, ruling, on 10 November, against the practice of creating golden shares (Case C-212/09).
And on Thursday the ECJ fully backed the commission's argument, saying, "the holding of golden shares confers on Portugal an influence on the management of PT which is not justified by the size of its shareholding.
The European court said that the government's golden shares give a too strong hold over the company and discourage investors.
He said that, given EADS' role in Europe's security, the use of golden shares would help the group - which apart from its range of Airbus airliners also makes military transport aircraft, defence electronics and telecommunications satellites - fend off a hostile takeover in the event of such a move.
In September, a European Court of Justice ruling required the Dutch government to give up their golden shares in major companies.
In 2003 the European Court of Justice ruled a golden share was incompatible with EU law and Spain said last November it would fast-track legislation to abolish its golden shares.
Under certain limited conditions, I believe firms issuing golden shares should be allowed to remain listed,'' Sugiyama said.
Governments often use golden shares as a method of retaining control in a privatised company of strategic importance, but is there a better way to protect national interests?
News that the Government is to give up its golden shares in National Power helped the stock.
Since March 10, Golden shares have gone from 2 cents to a Thursday close of 10 cents.