What is a gold stock?
Gold stock is a special kind of stock which gives its owner, the government, special rights among other stockholders to take control of privatized enterprises. Such stock allows the state to keep control of the financial market. Gold stocks are the tools of public administration of public corporations, and the special rights belong to the government. The government holds the deciding vote on a board of directors which is given for protection of the interest of the corporation and a state finance market.Gold stocks were widely used and played a huge role in developing of economy of many world countries.
What does it give?
The ownerof a gold stock aside from other rights of a stockholder has a first say in:
- The issues of changes in the company’s article of association.
- Reorganization of the enterprise.
- In taking decision about changing the size of charter capital.
- In big deals in which the state can be interested.
In companies that manage to attract foreign investment, the functions of the golden stock are weakened. While considering some issue the government can only approve of the decision taken by the board of directors.
Gold stock is not a tool for getting income and state financing of companies, it only gives special rights and priorities in strategies of the enterprise.