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leanne-jones
leanne-jones, Barrister
Category: Law
Satisfied Customers: 183
Experience:  Barrister
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There is no distinction in the memorandum and articles between

Customer Question

There is no distinction in the memorandum and articles between classes of share, no certificates have been issued, i'm confused as to why these different classes exist and what effect they have in terms of control of the company. I thought class c shares gave no real voting rights or power?
Submitted: 4 years ago.
Category: Law
Expert:  leanne-jones replied 4 years ago.
Hello - my name is Leanne and it will be my pleasure to assist you today.

Class A: A classification of common stock that may be accompanied by more or fewer voting rights than Class B shares. Although Class A shares are often thought to carry more voting rights than Class B shares, this is not always the case.

Companies will often try to disguise the disadvantages associated with owning shares with fewer voting rights by naming those shares "Class A," and those with more voting rights "Class B."

Class B: A classification of common stock that may be accompanied by more or fewer voting rights than Class A shares. Although Class A shares are often thought to carry more voting rights than Class B shares, this is not always the case. Companies will often try to disguise the disadvantages associated with owning shares with fewer voting rights by naming those shares "Class A," and those with more voting rights "Class B."

Class C: A class of mutual fund with a level load. Class C shares don't have front-end loads, but have small back-end loads that are typically around 1% and may vanish once the shares have been held for a year. They have lower expense ratios than class B shares, but higher expense ratios than class A shares. Class C shares can be a good option for investors who will sell after a relatively short period, but will hold the shares for at least a year.

I hope this helps and please remember to rate my answer I gave earlier and this one.

If there is anything else you need please let me know.
Expert:  leanne-jones replied 4 years ago.
I'm just following up with you to see how everything is going. Did my answer help?


Leanne