Illustrasjon som viser konseptet om aksjeklasser med A-aksjer og B-aksjer

What are Share Classes?

Share classes are different sets of shares that give different rights in the company. This is an important concept for understanding how ownership and control can be structured in a limited liability company (LLC) .

In principle, shares give equal rights in a company. For example, all shareholders have equal rights to participate and vote at the general meeting, equal rights to receive dividends and equal rights to trade the shares.

Illustration showing the concept of share classes

A shares and B shares

There is an exception in the Companies Act that states that the company can create different share classes, which give different rights. It is common to distinguish between A shares and B shares :

  • A shares usually contain all the original rights
  • B shares usually have limited rights

Comparison of A shares and B shares with their respective rights

Practical Example

Let's say you, as the founder of a company, want to have administrative control of the company, as well as financial benefits. Then you create two classes of shares; one that gives voting rights and one that gives dividend rights.

To avoid losing control of your company, you can offer other shareholders only dividend shares (B shares). They will then receive the financial benefits, but will not gain voting rights in the company.

Example of how share classes are used to maintain control

Articles of Association and Share Classes

It is the articles of association of a company that determine whether the company has different classes of shares. The articles of association must specify:

  • What share classes exist?
  • What rights does each class have?
  • Any limitations for each class

This is an important part of the company's basic structure and affects both the share capital and how the company is managed.

Advantages of Share Classes

Share classes provide flexibility for companies to:

  • Raise capital without losing control
  • Reward investors with financial rights
  • Retain voting rights with the founders
  • Structuring ownership in a way that suits the company's needs

Related Concepts

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