Type of Company shares
WHAT IS SHARE
Share refer to ownership in the Company .
TYPE OF SHARES
Is the most common share in Singapore registered company .
In general, 1 ordinary share represent 1 vote .
Ordinary shareholder eligible for the right for dividend and right to claim the remaining assets when the company is wound up .
Some of the company may divide ordinary share into different class of share ( Class A , B , C)
Different class of ordinary share may represent different right .
Preference shareholder ‘s right is over ordinary shareholder in term of dividend distribution and claim of company assets.
In most cases, preference shareholder have NO voting right .
BASIC RIGHT ATTACHED TO SHARES
- Voting right
- Right to call for meeting
- right to attend meeting
- right for the distribution of dividend
DOCUMENTS DETERMINE SHAREHOLDER RIGHT
Company constitution or shareholder agreement is the documents to list down shareholder right .
Related article : What is Shareholder Agreement
Related article : What is Company Constitution
CONSIDERATION TO DETERMINE TYPES OF SHARES
- shareholder responsible level in the Company
- who is shareholder ( founder / Employee / Investor)
- Invested Amount into the company
- shareholder relation level with the company business activities