Affirmative voting rights, also known as veto or reserved or consent rights, refer to legally agreed-upon issues that are typically found in shareholder agreements, joint venture agreements and other investor agreements. It is a safeguard given to the investors whereby it is mandatory for the founders and the board of directors of the company to obtain  shareholders’ consent before making decisions on subjects covered by affirmative voting rights. No decision can be implemented by the company unless the holders of affirmative rights agree. This right is applicable even if the majority shareholders have sufficient shareholding to approve such decisions. These matters generally protect the rights of the minority shareholders. Few examples of affirmative matters include: Mergers, demergers, amalgamations, consolidations; Acquisition of other businesses by way of purchase of shares, business transfer, asset purchase; Creation of joint ventures or partnerships, creation of a subsidiary; Any strategic, financial or other alliance with a third party which results in investments by the company; Approval of any business plan or annual plan; (vi) changes in terms relating to vesting of founders and so on.