Share class

Common card · No. 379372

In finance, share classes or share classifications are different types of shares which together constitute a company's share capital but have different levels of voting (and often other) rights. For example, a company might create two classes of shares, class A and class B, where the class A shares have fewer rights than class B shareholders. This may be done to maintain control of a company by a group of shareholders or to make a company more difficult to take over. For example, a company may create preferred stock as a poison pill so that the shareholders of common stock do not have the power to agree to a merger or takeover plan without the consent of the preferred stockholders. There is no statutory procedure for converting shares from one class to another, but the provisions of the company's articles of association may be relevant. It may be done with the consent of all the shareholders affected. The safest course is to pass a resolution to which all the shareholders consent, since...

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