What voting rights does a holder of participating preferred shares typically have?

The answer indicating that a holder of participating preferred shares typically has no voting rights is accurate. In most cases, holders of preferred shares, including participating preferred shares, do not possess voting rights in the same manner that common shareholders do. This is due to the nature of preferred stock, which is usually associated with fixed dividends and priority in claims on assets during liquidation, rather than with voting power.

While participating preferred shares may provide the benefit of dividends that can increase if the company performs well, they still typically lack voting privileges. This designates common shares as the primary means for shareholders to influence corporate governance, including elections for the board of directors or amendments to corporate policies.

Therefore, the choice of no voting rights reflects the standard treatment of participating preferred shareholders and reinforces the distinction between the roles and rights of preferred and common shareholders in corporate structures.