Not all shares are the same. The type of shares you hold can determine your voting power, dividends, profits, and level of control in a company.
Under Section 46 of the Companies Act, companies may issue different classes of shares, each with specific rights and obligations.
Common Types of Shares
• Ordinary Shares – Voting rights and participation in profits
• Preference Shares – Priority in dividend payments and capital repayment
• Non-Voting Shares – Entitled to profits without voting rights
• Redeemable Shares – May be bought back by the company under agreed terms
Special Share Classes
• Convertible Shares – Can be converted into another class of shares
• Deferred Shares – Dividends are paid after other shareholders
Why it matters:
• Your shareholding determines your control, returns, and decision-making power
• Understanding share types helps with better investment and business structuring decisions
Need help choosing the right type of shares for your business or investment?
Get in touch with Andersen — we’ll help you make informed decisions with confidence
