NAME Avik OAS

NO - 301ll020
ENROLLMENT
ASSIGNMENT

.caTION Do Osdi60Ty Eommo Sto2 2 DVR Comno h Stock o acOmpany

neeessariy hava uoldely dSSeeaFSace vauues ? JusHSy dous

ansuoer coith examPle gOm Indlan 2 US MaTkes.

ons) Ln BuslaesS buu 1n9 one syare baslaauy mean s buyng one vote -
ease o aDvR DiS$erential Notiag Rlgn shase it can c'ther
have hisher o DoweT votiog olgnk than any othes Ordinary share
based on some cireumStantas ane compony pouues

In 4nolt a eom panl aTa noF aUbweol o igsue 8horeS t h mu lHP la

voHn aht So basealy these is only one usa of PYR ohlah ls to

imLe he otin& g n t ofeuHes he ouoneos of DVR shases Teeeivess

high dividen d eanings foa ohich- they need to sacflee their voing

igntsTus DNR Stock can

help a busimess to pooffeT most of the
deeision making Poue s aa h e hand
shate holders Loitn
Supenov Votiog aishs pVR SshaTeS
aTe ideal foT s m a u
3haseho lders tney davely exerelse thelr vetog dgh This is
because bmly a feus u o d e t e tamd +he tom p a a y s a f s i r la sueh

d e l i e that they cah loswen ce I oetoms. They buy shares ony

to make money and go happi uy ve aoay Veting i s u k i n
faNouT O hOse uoho havz h e maagemeaF onrol

have es ueo DVR uares

The ust of ndi a Compomies that
neudes TATA MOto Pantaloon RetuaL InUa, GuyaTat NRE Cote

2 Jaun Iorigaton DYR Shares uoese alowed in I n l a n 2000o.

TATA OfoTs ove +he Last S

For example 98 uoe eonsdes
Ane gtocles o TATA Motors DYR
yeoTE b o t n TATA Moto 2
have almosF peTformed lnL tandern Both o +neom nave

the same exach Sace value usmich is 2. But cohite the TATA Motos
bVR Stooks nave Hven a total etuTn og 24.437o the TATA Motos
Srocl nave retuoned 2 9 4 s7o Dudlag he same tim2 * n E oVR

dissoumt over +he boclioary smare has aise to 427o as ag

DYRS bac
3S dlscoubE a t tMe tHome o ssue o TATA Motors
an
En 2008 héS iebe cause t h e DVR h a r e h o t d e r ' s a r e pata
e o h e r aa s h e
a d d u i o n a l $7o n a e n d com pare to ordinaoy nare

endoy
1S 3us o
That t h e DVA Shaseholders ho ld
O y ghts +he
-

en3oy For nstance

OS cona- ordinary shareho lders one vote jor
can cask
DYR sheres
er's Of TATA Motor's auvdend
onoe
Houweye they 9et S
Ev2cy 10 shases helA
On 13h
2 2 e con panv
Than oTdimaTy shae holders
dirialend +o DVR hdes and 4
as
ave 4.10 Lhore
So tha bo
oralnary mave n l a e s S o
a8nare to holder hae o
shas2 meme d i a l enel
DYR Shate
sac Sice
 looth the dlscoun

7o e5 the votng nant Thls exp1adnns

9 these
is eTy Uml te
On DvVR he Te as o n uony
and als o to
make
need

demand Sor the DVRS. I n d l an companies Uee

dust
heis DYRs
s h a r e h o l o d e r s

more atractH v e to
n h e Us
Motors
hother example is the Jaln IdgotH on DVR, un UKe the

D uas 156ued as a bonus issue not a s a igu 1s

e XS1D& Share holdes ot Jadon I m a e i o n D V R S o o s

hat coud
poasiby say or exp lain ohy 4he Jan Im
DYR has outpedfoTmed ne 3aln mRaton 3be
o v e s

the lasH S yeas

des pite, harlo8uL 16% vottn8 D8
Uke n he
Case og TATA Moto% The gaee valwe
is
Same both
or h e Jeun IorgaHon DYR a r e s and

Ordinoasy gnares Houwever uke jn the TATA

Moto h e DVR lose os
dls co uDt jn Saia
aToud 40 7o
mgaton oa

DYR bonus hases

exactyuohese oas in 2011 s h e n t h e

wege ios+ jsuAd

In Us masket tomponies ase alooes o s u e mares it
muliple vohng dgns 9o
aically these istuo o use oS DYR
cohiéh is to havehigne0 rOLweT Voting dgn 4han any oeT
r i n a y snae based on certadn eirumtames 2 mpany

pou ei es
Ler us Sisct +are the example o the Us sompan y Me
Platforms Sne Both alacs A 2Class B Lommoo Stoc
hava na same a e auue onlen is $ O0oO0O6 par vaua
OuT Class B CoMmoa stoe has 1o voes per shase 2 ous

Cass A Comon stock has o ne vote per ehame I

measS Clacs A snares ar2 momal shares ClasS
B ehaTeS Ore DVR a e h a t e s Stock holder who hald
shares o Cass B

Oicos, employees & diraerors and neic ajHu ates Aoqehe

hold a subsrantial majosty of tho Noho9 nshE og- tha

Olstandlng Capita Sock
Be eoau se o he e ten to
One vOiag ato oeuoeen elass B2 Cass A
4he holders OS 2laSS B cOmmom Stoek
commen stoel
vo Ueiely eOnroL
majoy os tne
combimimg vottO9 poweT otha epmgron
Stock and therzfor ase abe to contro ou mattes
submited to the stockholde
Sr approvaD s0 Long os Ma
shases o Clas B commorn stocl
gep 2sent os-loagt-1%
o ouUu oudatancdog &hases A elass aommn
Ctock his on ca nhoted ontol otA u m i tho
 esSov the Sodseable Suture.
ioSuLence Upooate ma
Comp amy s
Anothes example o BedkshiTe Hath usay Ine.
Clacs A commo Suore 2 las B Common s hate
Hese both the
valuue facr Voluw of Las A choses a is $ S PaT Valus
havin8 oistereot faea
Shares 1 0 0033 Par Voue 2ach class A comm on-
Foc value of c l a s B
B comononStock POSses
Share is 20thtlWd to o n e vole per hare eas

oliidomd 2 d s i b ution dgh+ eual to one-fiFheerth hundr2dth-C1/1sDo)

olass A COmmOsto Ok 2ach eas s B oTmnon suae

O s u chdsu+ of
o ne-tene-thouSanCn (Yoooo) o he
posses votne ghts eaquralent
we can
say ClaSs A shares ase
HeTe
clacs A &haes.
OHm8 iguts of
OTmal uares and claSs B &havesara DVR hares

boh ue oTdi naM Cemrmon &

w2 say 2n 9n e i a
So can

OMPAny Neee ssAN U have uidoly

tne DVR commorm >oeu: of
eo m P a i es
Bu ln US Can var as some2
Samefae value
oni some cem pamY Uce Bek&hlrre
hane Lame a e e voll

have disfereot

REPERENCES

htps // grououo a/P/disference-betuw een-dvs-and-ordinory-s

https :// wuoo. motlalosuwal com/blo9-deails/plsfesenca-be+uoe
- Ordimasy-shases- and- DVR-Shates-./ 13444

) h t p s : l uwusu businesstoday jo/ma gazine/stoeks/stovy / houo-

to- benefit-from-shases - tolH-distesenHa0 votina-1g

213 61- 20)3- 03-2o

) https :// egutybwwS COm/categoTy Php ? id =

81281

S) Annual ReporF O Meto Platforms 9ne 2

Beskshlre
Hathuoay 9ne