A Golden Share is a type of share that grants its holder special voting rights, usually greater than those of ordinary shareholders, allowing the holder to control key decisions within a company, even if they hold a minority of the overall shares. This type of share is typically used by governments or other entities to maintain control over a company deemed to be of strategic importance, even after it has been privatized or sold off.

Key characteristics of a Golden Share include:

1. Special Voting Rights: The holder of a Golden Share usually has veto power over specific corporate decisions, such as changes in the company’s ownership structure, mergers and acquisitions, or alterations to the company’s strategic direction. This ensures that the holder can influence crucial decisions, regardless of their actual shareholding percentage.
2. Government Use: Golden Shares are often held by governments in companies that operate in sectors of national importance, such as defense, energy, transportation, or telecommunications. This allows the government to retain influence over these industries even after the company is privatized.
3. Protection of National Interests: The main purpose of a Golden Share is to protect national interests. For example, a government might use a Golden Share to prevent a foreign entity from acquiring control of a company that is critical to the country’s infrastructure or security.
4. Limited Duration: In some cases, the rights associated with a Golden Share may be temporary, expiring after a certain period or when specific conditions are met. However, in other cases, the rights may be indefinite.
5. Controversy and Legal Challenges: Golden Shares can be controversial because they can undermine the principle of equal treatment of shareholders. In some jurisdictions, the use of Golden Shares has been challenged in courts, especially within the European Union, where they have been scrutinized under competition and free market principles.

In summary, a Golden Share is a special type of share that provides its holder with enhanced control over a company, typically used by governments to maintain influence over strategically important companies. It allows the holder to veto critical decisions, ensuring that the company remains aligned with national interests or strategic objectives.