golden share: meaning, definition, pronunciation and examples
C1/C2Formal, Technical (Finance/Business/Corporate Law)
Quick answer
What does “golden share” mean?
A nominal share in a privatized company, typically owned by a government, granting it special veto powers over certain decisions, particularly to protect national interests.
Audio
Pronunciation
Definition
Meaning and Definition
A nominal share in a privatized company, typically owned by a government, granting it special veto powers over certain decisions, particularly to protect national interests.
Any shareholding that gives its holder disproportionate or decisive control over specific corporate actions, regardless of its size, often used to prevent hostile takeovers or maintain strategic direction. Can also refer to special voting rights in venture capital or co-operatives.
Dialectal Variation
British vs American Usage
Differences
The concept originated in the UK during 1980s privatisations (e.g., British Aerospace). It is more commonly discussed in UK business contexts. In the US, similar control mechanisms exist but are more often labelled as 'poison pills', 'super-voting shares', or specific 'class' shares. 'Golden share' is understood but less idiomatic in American corporate jargon.
Connotations
UK: Strong association with government intervention, national security, and the legacy of privatisation. US: More likely associated with founder control in tech companies or anti-takeover measures.
Frequency
Higher frequency in UK/EU financial news, legal texts, and policy discussions. Lower frequency in general American business media, though used in international finance contexts.
Grammar
How to Use “golden share” in a Sentence
[Entity] holds/retains a golden share in [Company].The [Government/Agency] exercised its golden share to veto the takeover.A golden share was created to safeguard [national interest/strategic asset].Vocabulary
Collocations
Examples
Examples of “golden share” in a Sentence
verb
British English
- Not applicable; 'golden share' is exclusively a noun compound.
American English
- Not applicable; 'golden share' is exclusively a noun compound.
adverb
British English
- Not applicable.
American English
- Not applicable.
adjective
British English
- Not applicable; 'golden share' functions as a noun. Adjectival use is rare (e.g., 'golden-share provision').
American English
- Not applicable; 'golden share' functions as a noun. Adjectival use is rare (e.g., 'golden-share structure').
Usage
Meaning in Context
Business
The board advised against the merger, knowing the state's golden share gave it a decisive vote.
Academic
The study examines the efficacy of golden shares as a tool for post-privatization control in European economies.
Everyday
Rarely used in everyday conversation unless discussing news about major company takeovers or government intervention.
Technical
The Articles of Association stipulate that the golden share confers the right to block any resolution altering the company's core national infrastructure assets.
Vocabulary
Synonyms of “golden share”
Strong
Neutral
Weak
Vocabulary
Antonyms of “golden share”
Watch out
Common Mistakes When Using “golden share”
- Using it to mean a highly valuable financial share ('I own a golden share in Tesla' – incorrect). Treating it as a plural countable noun without care ('golden shares' is possible but less common). Confusing it with a 'golden parachute' (executive severance package).
FAQ
Frequently Asked Questions
No. A golden share is typically a single or very small number of shares that grant specific powers (like a veto), regardless of the holder's overall percentage ownership. A majority shareholding gives general control based on owning over 50% of shares.
Yes. While historically associated with governments, private companies (e.g., start-ups) can issue shares with special voting rights to founders or key investors, functionally similar to a golden share.
No. Their legality varies by jurisdiction. The European Union has challenged some national golden shares as barriers to free capital movement. They must be carefully structured to comply with corporate and securities law.
Not necessarily. Its value lies in control, not directly in its trading price or dividend rights. It may even be a nominal-value share. Its 'value' is strategic and non-monetary.
A nominal share in a privatized company, typically owned by a government, granting it special veto powers over certain decisions, particularly to protect national interests.
Golden share is usually formal, technical (finance/business/corporate law) in register.
Golden share: in British English it is pronounced /ˌɡəʊl.dən ˈʃeə(r)/, and in American English it is pronounced /ˌɡoʊl.dən ˈʃer/. Tap the audio buttons above to hear it.
Phrases
Idioms & Phrases
- “Not applicable; term is itself a fixed financial idiom.”
Learning
Memory Aids
Mnemonic
Think of King Midas: everything he touched turned to gold. A 'golden share' is the one special share that, when used ('touched'), turns a normal decision into a controlled one.
Conceptual Metaphor
CONTROL IS A SPECIAL KEY. The golden share is conceptualized as a unique key that unlocks (or more often, locks) major corporate decisions.
Practice
Quiz
What is the primary purpose of a 'golden share'?