![]() Rationale for the Creation of Multiple Share ClassesĬompanies create different share classes for the following reasons: The diagram below outlines the share types: The types of shares in which share classes are created from are largely common shares and preferred shares. The rights and privileges are with regards to voting and non-voting rights, non-receipt or receipt of dividends, dividend timing and quantum, the entitlement of profits, rights to capital, and other factors depending on the circumstances of the company. ![]() Shares classes that are created by a company carry ownership restrictions and confer different rights and privileges to diverse shareholders. The type of shares and share classes that a company can create is determined and guided by its articles of association, also referred to as articles of incorporation. A share class or share classes are usually created from various types of shares in a company.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |