Shares, shareholders & voting · Working
Protective provision
Also called: investor veto
ELI5
A charter or contractual term requiring class or investor approval for specified actions.
Used in conversation
“The draft mentions protective provision, but the scope and jurisdiction are still unclear.”
Pitch context
You will see “Protective provision” in board papers, contracts, policies, risk registers and compliance reports when the discussion reaches shares, shareholders & voting.
Why it matters: In shares, shareholders & voting, a loose definition can change rights, obligations, approval, disclosure or enforceability.
Caution
Meaning, enforceability and required process vary by jurisdiction and agreement; this definition is not legal advice.
Sources & evidence · 4
Direct term-level sources and supporting source families.
- OECD — G20/OECD Principles of Corporate Governance 2023Direct source · institutional · checked 2026-08-16
- U.S. Securities and Exchange Commission — Small Business Capital Formation GlossaryDirect source · primary · checked 2026-08-16
- U.S. Securities and Exchange Commission — EDGAR and filing resourcesDirect source · primary · checked 2026-08-16
- National Institute of Standards and Technology — Computer Security Resource Center GlossarySupporting source family · primary · checked 2026-08-16