Voting shares are a type of equity in a company that grant the shareholder the right to vote on corporate matters, such as electing members of the board of directors, approving mergers or acquisitions or making changes to corporate policies. These shares typically represent ownership in the company and are most commonly associated with common stock.

They are important within Know Your Customer (KYC) programs, because they help determine who has actual control over a company. Identifying the individuals or entities that hold significant voting rights is essential for mapping the ownership structure and pinpointing ultimate beneficial owners (UBOs). For example, if someone holds more than 25% of a company’s voting shares, they are often considered to have significant influence or control, which can trigger enhanced due diligence (EDD) requirements.

Understanding the distribution of voting shares can also reveal whether control is concentrated in a single individual, a group of stakeholders or a parent company. This information is critical during risk assessments, especially when evaluating potential conflicts of interest, control risks or exposure to politically exposed persons (PEPs). Verifying who holds voting shares supports compliance with Anti-Money Laundering (AML) regulations and helps institutions build a clearer picture of the companies they are working with.