The Advantages and Disadvantages of A and B Shares (Multiple Share Classes)
A and B shares (ie multiple share classes) are an option for your company with the following distinctive benefits:- gaining control over the amount,[link widoczny dla zalogowanych], as well as the timing, of the dividend due to each class of shareholder;- granting, or taking away, voting rights of the various classes of shareholders;- limiting or denying certain shareholders the right to a return of capital on winding up;- enhancing the rights of one class of shareholders,[link widoczny dla zalogowanych], such that they receive a return of capital or a fixed dividend before another class of shareholders.You can form up a company with multiple share classes from incorporation (registration). This is a service available from solicitors and certain company formation agents.Giving a certain name to a class of shares does not determine the rights attached to them. As a result the names of share classes are sometimes deceptive. Nevertheless, there are some typical associations that tend to hold true.
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