What is true about treasury shares regarding voting rights?

Treasury shares are shares that a corporation has repurchased from shareholders and are held in the company's treasury. Importantly, these shares do not confer any voting rights to the corporation. When a company buys back its shares, those shares are effectively taken out of circulation; therefore, they cannot be used to vote on corporate matters, like elections for the board of directors or other shareholder decisions.

Since treasury shares are owned by the company itself rather than by external shareholders, they do not participate in the governance of the company through voting. This is why the correct understanding is that treasury shares have no voting rights. The lack of voting rights is fundamental to treasury shares and affects how companies manage their capital structure and shareholder interactions.