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36: Rights and powers attaching to shares
or “What you can do and get as a shareholder”
You could also call this:

“Companies can issue different types of shares with varying rights and features”

A company can have different types of shares, as long as its constitution allows it. You can think of shares as pieces of ownership in a company. These shares can be different from each other in a few ways:

Some shares can be bought back by the company later on. This is called being redeemable, and you can learn more about it in section 68.

Some shares might give you more money when the company shares its profits or when it’s sold. These are called preferential shares.

Some shares might let you have a say in how the company is run, but with special rules or limits. These are called special voting shares.

And some shares might not let you have any say at all in how the company is run. These are called non-voting shares.

So, when you own shares in a company, it’s important to know what kind of shares you have and what rights they give you.

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Next up: 38: No nominal value

or “Shares have no fixed value printed on them”
Next

Part 6 Shares and debentures

37Types of shares

  1. Subject to the constitution of the company, different classes of shares may be issued in a company.

  2. Without limiting subsection (1), shares in a company may—

  3. be redeemable within the meaning of section 68; or
    1. confer preferential rights to distributions of capital or income; or
      1. confer special, limited, or conditional voting rights; or
        1. not confer voting rights.

          Notes
          • Section 37(2)(a): replaced, on , by section 5 of the Companies Act 1993 Amendment Act 1994 (1994 No 6).