Share Classes and Special Rights

Brian M. Blugerman • Posted 30/11/2008 • Under Articles

It is often useful for a company to establish different classes of shares, each with different rights. Particularly in these times of uncertain liquidity and opaque valuations, having multiple classes, each linked to different asset pools, can provide helpful flexibility. But care must be taken in creating new share classes because, once established, class rights can only be changed if certain approvals are obtained.