{"id":217173,"date":"2022-08-25T19:39:23","date_gmt":"2022-08-25T06:39:23","guid":{"rendered":"https:\/\/legalvision.co.nz\/?p=217173"},"modified":"2022-09-05T15:34:42","modified_gmt":"2022-09-05T02:34:42","slug":"share-classes","status":"publish","type":"post","link":"https:\/\/legalvision.co.nz\/corporations\/share-classes\/","title":{"rendered":"What Are Share Classes in New Zealand?"},"content":{"rendered":"\n<p><span style=\"font-weight: 400;\">As a New Zealand company with various shareholders, you might issue <a href=\"https:\/\/companies-register.companiesoffice.govt.nz\/help-centre\/complying-with-the-law\/what-it-means-to-be-a-shareholder\/\">different kinds of shares<\/a> with different rights attached to them. These are known as \u2018share classes\u2019 and refer to the different types of interests shareholders have in a company. This article will discuss the various shares a company can issue in New Zealand.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span style=\"font-weight: 400;\">Different Share Classes<\/span><\/h2>\n\n\n\n<p><span style=\"font-weight: 400;\">A company can create different classes of shares. Companies can issue shares which are:&nbsp;<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li style=\"font-weight: 400;\" aria-level=\"1\"><a href=\"https:\/\/legalvision.co.nz\/business-structures\/redeemable-preference-shares\/\"><span style=\"font-weight: 400;\">redeemable<\/span><\/a><span style=\"font-weight: 400;\">;<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">confer preferential rights to distributions of capital or income;<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">confer special, limited or conditional voting rights; or<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">do not have voting rights attached to them.<\/span><\/li><\/ul>\n\n\n\n<div class=\"box box--icon box--info\">\n<p><span style=\"font-weight: 400;\">Typically, the <\/span><a href=\"https:\/\/legalvision.co.nz\/business-structures\/what-is-a-company-constitution\/\"><span style=\"font-weight: 400;\">company&#8217;s constitution<\/span><\/a><span style=\"font-weight: 400;\"> will outline the different classes of shares that the company can issue.&nbsp;<\/span><\/p>\n<\/div>\n\n\n\n<p><span style=\"font-weight: 400;\">Usually, the share classes impact the main rights of shareholders, including their:&nbsp;<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">right to vote;<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">participation in dividends; and&nbsp;<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">entitlement to remaining capital upon winding up the company.<\/span><\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span style=\"font-weight: 400;\">Entitlement to Vote<\/span><\/h2>\n\n\n\n<p><span style=\"font-weight: 400;\">Ordinary shares in a company usually carry one vote per share. In shareholder meetings, certain company decisions require a certain minimum of votes to pass. <\/span><\/p>\n\n\n\n<div class=\"box box--icon box--info\">\n<p><span style=\"font-weight: 400;\">This may be 50% for ordinary resolutions or 75% for special resolutions.&nbsp;<\/span><\/p>\n<\/div>\n\n\n\n<p><span style=\"font-weight: 400;\">However, if a shareholder receives non-voting shares, they w<\/span>ill not be able to vote in shareholder meetings<span style=\"font-weight: 400;\">. While they still may have other rights, such as the right dividends, they will not be able to impact company decision-making. This option may be preferable for silent investors who do not wish to <\/span>involve themselves <span style=\"font-weight: 400;\">with the company\u2019s affairs.&nbsp;<\/span><\/p>\n\n\n\n\n<a href=\"#content-next\"\n   class=\"block p-4 mt-10 text-xl font-bold text-center text-white no-underline bg-gray-800 rounded-t-xl\">\n    Continue reading this article below the form\n    <i class=\"text-xl fa-regular fa-arrow-down\"><\/i>\n<\/a>\n<div class=\"px-6 pt-10 pb-12 mb-10 text-center bg-gray-100 rounded-b-xl sm:px-12 test\">\n    <div class=\"mb-8 text-2xl font-bold text-orange\">\n        Need legal advice?\n        <br>\n        <span class=\"text-lg not-prose\">\n                            Call <a href=\"tel:+64800005570\" class=\"not-prose\">0800 005 570<\/a> for urgent assistance.\n                <br>\n                Otherwise, complete this form, and we will contact you within one business day.\n                    <\/span>\n    <\/div>\n\n    \n\n<div class=\"not-prose flex justify-center text-left gform_input_bg_white    \">\n    <script>\nvar gform;gform||(document.addEventListener(\"gform_main_scripts_loaded\",function(){gform.scriptsLoaded=!0}),document.addEventListener(\"gform\/theme\/scripts_loaded\",function(){gform.themeScriptsLoaded=!0}),window.addEventListener(\"DOMContentLoaded\",function(){gform.domLoaded=!0}),gform={domLoaded:!1,scriptsLoaded:!1,themeScriptsLoaded:!1,isFormEditor:()=>\"function\"==typeof InitializeEditor,callIfLoaded:function(o){return!(!gform.domLoaded||!gform.scriptsLoaded||!gform.themeScriptsLoaded&&!gform.isFormEditor()||(gform.isFormEditor()&&console.warn(\"The use of gform.initializeOnLoaded() is deprecated in the form editor context and will be removed in Gravity Forms 3.1.\"),o(),0))},initializeOnLoaded:function(o){gform.callIfLoaded(o)||(document.addEventListener(\"gform_main_scripts_loaded\",()=>{gform.scriptsLoaded=!0,gform.callIfLoaded(o)}),document.addEventListener(\"gform\/theme\/scripts_loaded\",()=>{gform.themeScriptsLoaded=!0,gform.callIfLoaded(o)}),window.addEventListener(\"DOMContentLoaded\",()=>{gform.domLoaded=!0,gform.callIfLoaded(o)}))},hooks:{action:{},filter:{}},addAction:function(o,r,e,t){gform.addHook(\"action\",o,r,e,t)},addFilter:function(o,r,e,t){gform.addHook(\"filter\",o,r,e,t)},doAction:function(o){gform.doHook(\"action\",o,arguments)},applyFilters:function(o){return gform.doHook(\"filter\",o,arguments)},removeAction:function(o,r){gform.removeHook(\"action\",o,r)},removeFilter:function(o,r,e){gform.removeHook(\"filter\",o,r,e)},addHook:function(o,r,e,t,n){null==gform.hooks[o][r]&&(gform.hooks[o][r]=[]);var d=gform.hooks[o][r];null==n&&(n=r+\"_\"+d.length),gform.hooks[o][r].push({tag:n,callable:e,priority:t=null==t?10:t})},doHook:function(r,o,e){var t;if(e=Array.prototype.slice.call(e,1),null!=gform.hooks[r][o]&&((o=gform.hooks[r][o]).sort(function(o,r){return o.priority-r.priority}),o.forEach(function(o){\"function\"!=typeof(t=o.callable)&&(t=window[t]),\"action\"==r?t.apply(null,e):e[0]=t.apply(null,e)})),\"filter\"==r)return e[0]},removeHook:function(o,r,t,n){var e;null!=gform.hooks[o][r]&&(e=(e=gform.hooks[o][r]).filter(function(o,r,e){return!!(null!=n&&n!=o.tag||null!=t&&t!=o.priority)}),gform.hooks[o][r]=e)}});\n<\/script>\n\n                <div class='gf_browser_gecko gform_wrapper gravity-theme gform-theme--no-framework lawyer-form_wrapper gplaceholder_wrapper form-with-labels-no-asterisks_wrapper has-new-validation-error-styling_wrapper' data-form-theme='gravity-theme' data-form-index='0' id='gform_wrapper_2452' style='display:none'><div id='gf_2452' class='gform_anchor' tabindex='-1'><\/div><form method='post' enctype='multipart\/form-data' target='gform_ajax_frame_2452' id='gform_2452' class='lawyer-form gplaceholder form-with-labels-no-asterisks has-new-validation-error-styling' action='\/api\/wp\/v2\/posts\/217173#gf_2452' data-formid='2452' novalidate>\n                        <div class='gform-body gform_body'><div id='gform_fields_2452' class='gform_fields top_label form_sublabel_below description_below validation_below'><div id=\"field_2452_15\" class=\"gfield gfield--type-honeypot gform_validation_container field_sublabel_below gfield--has-description field_description_below field_validation_below gfield_visibility_visible\"  ><label class='gfield_label gform-field-label' for='input_2452_15'>URL<\/label><div class='ginput_container'><input name='input_15' id='input_2452_15' type='text' value='' autocomplete='new-password'\/><\/div><div class='gfield_description' id='gfield_description_2452_15'>This field is for validation purposes and should be left unchanged.<\/div><\/div><div id=\"field_2452_1\" class=\"gfield gfield--type-text gfield--input-type-text gf_left_half gfield--width-half gfield_contains_required field_sublabel_below gfield--no-description field_description_below field_validation_below gfield_visibility_visible\"  ><label class='gfield_label gform-field-label' for='input_2452_1'>First Name<span class=\"gfield_required\"><span class=\"gfield_required gfield_required_text\">(Required)<\/span><\/span><\/label><div class='ginput_container ginput_container_text'><input name='input_1' id='input_2452_1' type='text' value='' class='medium'     aria-required=\"true\" aria-invalid=\"false\"   \/><\/div><\/div><div id=\"field_2452_12\" class=\"gfield gfield--type-text gfield--input-type-text gf_right_half gfield--width-half gfield_contains_required field_sublabel_below gfield--no-description field_description_below field_validation_below gfield_visibility_visible\"  ><label class='gfield_label gform-field-label' for='input_2452_12'>Last Name<span class=\"gfield_required\"><span class=\"gfield_required gfield_required_text\">(Required)<\/span><\/span><\/label><div class='ginput_container ginput_container_text'><input name='input_12' id='input_2452_12' type='text' value='' class='medium'     aria-required=\"true\" aria-invalid=\"false\"   \/><\/div><\/div><div id=\"field_2452_2\" class=\"gfield gfield--type-email gfield--input-type-email gf_left_half gfield--width-half gfield_contains_required field_sublabel_below gfield--no-description field_description_below field_validation_below gfield_visibility_visible\"  ><label class='gfield_label gform-field-label' for='input_2452_2'>Email Address<span class=\"gfield_required\"><span class=\"gfield_required gfield_required_text\">(Required)<\/span><\/span><\/label><div class='ginput_container ginput_container_email'>\n                            <input name='input_2' id='input_2452_2' type='email' value='' class='medium'    aria-required=\"true\" aria-invalid=\"false\"  \/>\n                        <\/div><\/div><div id=\"field_2452_3\" class=\"gfield gfield--type-phone gfield--input-type-phone gf_right_half gfield--width-half gfield_contains_required field_sublabel_below gfield--no-description field_description_below field_validation_below gfield_visibility_visible\"  ><label class='gfield_label gform-field-label' for='input_2452_3'>Phone<span class=\"gfield_required\"><span class=\"gfield_required gfield_required_text\">(Required)<\/span><\/span><\/label><div class='ginput_container ginput_container_phone'><input name='input_3' id='input_2452_3' type='tel' value='' class='medium'   aria-required=\"true\" aria-invalid=\"false\"   \/><\/div><\/div><div id=\"field_2452_14\" class=\"gfield gfield--type-select gfield--input-type-select gfield--width-full custom-select gfield_contains_required field_sublabel_below gfield--no-description field_description_below field_validation_below gfield_visibility_visible\"  ><label class='gfield_label gform-field-label' for='input_2452_14'>Number of Employees in Your Business<span class=\"gfield_required\"><span class=\"gfield_required gfield_required_text\">(Required)<\/span><\/span><\/label><div class='ginput_container ginput_container_select'><select name='input_14' id='input_2452_14' class='large gfield_select'    aria-required=\"true\" aria-invalid=\"false\" ><option value='' ><\/option><option value='0' >0<\/option><option value='1' >1-5<\/option><option value='6' >6-20<\/option><option value='21' >21-50<\/option><option value='51' >51-250<\/option><option value='250' >250+<\/option><\/select><\/div><\/div><div id=\"field_2452_4\" class=\"gfield gfield--type-textarea gfield--input-type-textarea gfield_contains_required field_sublabel_below gfield--no-description field_description_below field_validation_below gfield_visibility_visible\"  ><label class='gfield_label gform-field-label' for='input_2452_4'>Tell us about your enquiry<span class=\"gfield_required\"><span class=\"gfield_required gfield_required_text\">(Required)<\/span><\/span><\/label><div class='ginput_container ginput_container_textarea'><textarea name='input_4' id='input_2452_4' class='textarea medium'     aria-required=\"true\" aria-invalid=\"false\"   rows='10' cols='50'><\/textarea><\/div><\/div><div id=\"field_2452_5\" class=\"gfield gfield--type-html gfield--input-type-html gfield_html gfield_html_formatted gfield_no_follows_desc field_sublabel_below gfield--no-description field_description_below field_validation_below gfield_visibility_visible\"  >By submitting this form, you agree to receive emails from LegalVision and can unsubscribe at any time. View our <a href=\"https:\/\/legalvision.co.nz\/privacy-policy\/\" target=\"_blank\">Privacy Policy<\/a>. <\/div><div id=\"field_2452_8\" class=\"gfield gfield--type-hidden gfield--input-type-hidden gform_hidden field_sublabel_below gfield--no-description field_description_below field_validation_below gfield_visibility_visible\"  ><div class='ginput_container ginput_container_text'><input name='input_8' id='input_2452_8' type='hidden' class='gform_hidden'  aria-invalid=\"false\" value='http:\/\/legalvision.co.nz\/api\/wp\/v2\/posts\/217173' \/><\/div><\/div><div id=\"field_2452_13\" class=\"gfield gfield--type-hidden gfield--input-type-hidden gform_hidden field_sublabel_below gfield--no-description field_description_below field_validation_below gfield_visibility_visible\"  ><div class='ginput_container ginput_container_text'><input name='input_13' id='input_2452_13' type='hidden' class='gform_hidden'  aria-invalid=\"false\" value='generic_form' \/><\/div><\/div><\/div><\/div>\n        <div class='gform-footer gform_footer top_label'> <button type=\"submit\" id=\"gform_submit_button_2452\" class=\"gform_button button\" onclick=\"gform.submission.handleButtonClick(this);\" data-submission-type=\"submit\"><span class=\"gform_submit_button__text\">Submit Now<\/span><\/button> <input type='hidden' name='gform_ajax' value='form_id=2452&amp;title=&amp;description=&amp;tabindex=0&amp;theme=gravity-theme&amp;hash=8d907caff460821c366ed2411b0c45b3' \/>\n            <input type='hidden' class='gform_hidden' name='gform_submission_method' data-js='gform_submission_method_2452' value='iframe' \/>\n            <input type='hidden' class='gform_hidden' name='gform_theme' data-js='gform_theme_2452' id='gform_theme_2452' value='gravity-theme' \/>\n            <input type='hidden' class='gform_hidden' name='gform_style_settings' data-js='gform_style_settings_2452' id='gform_style_settings_2452' value='' \/>\n            <input type='hidden' class='gform_hidden' name='is_submit_2452' value='1' \/>\n            <input type='hidden' class='gform_hidden' name='gform_submit' value='2452' \/>\n            \n            <input type='hidden' class='gform_hidden' name='gform_currency' data-currency='AUD' value='XrppBKwJELCZqtl4xk7do5cmUxGaI53ky6MEETTHPYZ1QuJITQNwQos4Ep+tKCX9\/mjl2z5KRUjxWdoKFIZUy0DUss9c91E4my0l6P4hHAOIglo=' \/>\n            <input type='hidden' class='gform_hidden' name='gform_unique_id' value='' \/>\n            <input type='hidden' class='gform_hidden' name='state_2452' value='WyJ7XCIxNFwiOltcIjIyODY0N2ViMWU3NTcxZjA4YTY4NGJmMDcwMTk3Y2I0XCIsXCJiMzk3YmQ1MDBmMmFjNjk1ODE4MzdmNTBhYTA2MzQ0OFwiLFwiNGYyNGZkZGEwMzlkNDUxMWFhZGE1NGYwZmQwZmNiZTdcIixcIjUyMmJkMDE2M2I2ZmEwOTI3NDZhZjU5YTg0ZmM1NDk5XCIsXCIzODRlNjk1YjQxMTAzMWFiYmQ2ODEyMGYyZWFhMDYyNlwiLFwiYjkzNDcwNTE2MjkxOGRjZWViMjQzNzRjNmE0NGVmNTlcIixcIjQxMTliODZhMzVjYzJiMWViNDZiMmQ4NjRlNGUzZmNjXCJdfSIsIjQ3MjNiMzA2ZDIyZGVkODA2N2YyMjYyOThkYzI1ODVmIl0=' \/>\n            <input type='hidden' autocomplete='off' class='gform_hidden' name='gform_target_page_number_2452' id='gform_target_page_number_2452' value='0' \/>\n            <input type='hidden' autocomplete='off' class='gform_hidden' name='gform_source_page_number_2452' id='gform_source_page_number_2452' value='1' \/>\n            <input type='hidden' name='gform_field_values' value='' \/>\n            \n        <\/div>\n                        <\/form>\n                        <\/div>\n\t\t                <iframe style='display:none;width:0px;height:0px;' src='about:blank' name='gform_ajax_frame_2452' id='gform_ajax_frame_2452' title='This iframe contains the logic required to handle Ajax powered Gravity Forms.'><\/iframe>\n\t\t                <script>\ngform.initializeOnLoaded( function() {gformInitSpinner( 2452, 'https:\/\/legalvision.co.nz\/wp-content\/themes\/legalv-v6\/img\/spinner.svg', true );jQuery('#gform_ajax_frame_2452').on('load',function(){var contents = jQuery(this).contents().find('*').html();var is_postback = contents.indexOf('GF_AJAX_POSTBACK') >= 0;if(!is_postback){return;}var form_content = jQuery(this).contents().find('#gform_wrapper_2452');var is_confirmation = jQuery(this).contents().find('#gform_confirmation_wrapper_2452').length > 0;var is_redirect = contents.indexOf('gformRedirect(){') >= 0;var is_form = form_content.length > 0 && ! is_redirect && ! is_confirmation;var mt = parseInt(jQuery('html').css('margin-top'), 10) + parseInt(jQuery('body').css('margin-top'), 10) + 100;if(is_form){form_content.find('form').css('opacity', 0);jQuery('#gform_wrapper_2452').html(form_content.html());if(form_content.hasClass('gform_validation_error')){jQuery('#gform_wrapper_2452').addClass('gform_validation_error');} else {jQuery('#gform_wrapper_2452').removeClass('gform_validation_error');}setTimeout( function() { \/* delay the scroll by 50 milliseconds to fix a bug in chrome *\/ jQuery(document).scrollTop(jQuery('#gform_wrapper_2452').offset().top - mt); }, 50 );if(window['gformInitDatepicker']) {gformInitDatepicker();}if(window['gformInitPriceFields']) {gformInitPriceFields();}var current_page = jQuery('#gform_source_page_number_2452').val();gformInitSpinner( 2452, 'https:\/\/legalvision.co.nz\/wp-content\/themes\/legalv-v6\/img\/spinner.svg', true );jQuery(document).trigger('gform_page_loaded', [2452, current_page]);window['gf_submitting_2452'] = false;}else if(!is_redirect){var confirmation_content = jQuery(this).contents().find('.GF_AJAX_POSTBACK').html();if(!confirmation_content){confirmation_content = contents;}jQuery('#gform_wrapper_2452').replaceWith(confirmation_content);jQuery(document).scrollTop(jQuery('#gf_2452').offset().top - mt);jQuery(document).trigger('gform_confirmation_loaded', [2452]);window['gf_submitting_2452'] = false;wp.a11y.speak(jQuery('#gform_confirmation_message_2452').text());}else{jQuery('#gform_2452').append(contents);if(window['gformRedirect']) {gformRedirect();}}jQuery(document).trigger(\"gform_pre_post_render\", [{ formId: \"2452\", currentPage: \"current_page\", abort: function() { this.preventDefault(); } }]);        if (event && event.defaultPrevented) {                return;        }        const gformWrapperDiv = document.getElementById( \"gform_wrapper_2452\" );        if ( gformWrapperDiv ) {            const visibilitySpan = document.createElement( \"span\" );            visibilitySpan.id = \"gform_visibility_test_2452\";            gformWrapperDiv.insertAdjacentElement( \"afterend\", visibilitySpan );        }        const visibilityTestDiv = document.getElementById( \"gform_visibility_test_2452\" );        let postRenderFired = false;        function triggerPostRender() {            if ( postRenderFired ) {                return;            }            postRenderFired = true;            gform.core.triggerPostRenderEvents( 2452, current_page );            if ( visibilityTestDiv ) {                visibilityTestDiv.parentNode.removeChild( visibilityTestDiv );            }        }        function debounce( func, wait, immediate ) {            var timeout;            return function() {                var context = this, args = arguments;                var later = function() {                    timeout = null;                    if ( !immediate ) func.apply( context, args );                };                var callNow = immediate && !timeout;                clearTimeout( timeout );                timeout = setTimeout( later, wait );                if ( callNow ) func.apply( context, args );            };        }        const debouncedTriggerPostRender = debounce( function() {            triggerPostRender();        }, 200 );        if ( visibilityTestDiv && visibilityTestDiv.offsetParent === null ) {            const observer = new MutationObserver( ( mutations ) => {                mutations.forEach( ( mutation ) => {                    if ( mutation.type === 'attributes' && visibilityTestDiv.offsetParent !== null ) {                        debouncedTriggerPostRender();                        observer.disconnect();                    }                });            });            observer.observe( document.body, {                attributes: true,                childList: false,                subtree: true,                attributeFilter: [ 'style', 'class' ],            });        } else {            triggerPostRender();        }    } );} );\n<\/script>\n<\/div>\n<\/div>\n<div id=\"content-next\"><!-- scroll anchor --><\/div>\n<h2 class=\"wp-block-heading\"><span style=\"font-weight: 400;\">Entitlement to Dividends<\/span><\/h2>\n\n\n\n<p><span style=\"font-weight: 400;\">Dividends are the distribution of profits by a company to its shareholders. The usual rule is that if a company decides to pay its shareholders dividends, every shareholder has an equal right to receive dividends. However, this may not be the case if:<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">a different class of shares has been created, which prioritises dividends for certain shareholders; or&nbsp;<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">a class of shares is created with no dividend rights.<\/span><\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span style=\"font-weight: 400;\">Entitlement to Capital<\/span><\/h2>\n\n\n\n<p><span style=\"font-weight: 400;\">When a company is <\/span><a href=\"https:\/\/legalvision.co.nz\/corporations\/wind-up-solvent-company\/\"><span style=\"font-weight: 400;\">wound up<\/span><\/a><span style=\"font-weight: 400;\">, a liquidator usually sells all assets and uses the sale proceeds to pay off the company\u2019s debts in order of priority. Once all debts have been repaid, any remaining assets will be distributed to shareholders. A different class of share may have different rights attached to the distribution of capital when winding up the company. Usually, this is a right of priority.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span style=\"font-weight: 400;\">Naming Your Share Classes<\/span><\/h2>\n\n\n\n<p><span style=\"font-weight: 400;\">While a company can create many different classes of shares, the two most common types of shares are ordinary shares and preference shares.<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span style=\"font-weight: 400;\">Ordinary Shares<\/span><\/h3>\n\n\n\n<p><span style=\"font-weight: 400;\">As the name suggests, ordinary shares are the most common type of shares a company will issue. Ordinary shares come with the following:<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">right to vote;&nbsp;<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">right to receive dividends; and&nbsp;<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">entitlement to receive capital upon winding up the company.&nbsp;<\/span><\/li><\/ul>\n\n\n\n<p><span style=\"font-weight: 400;\">If a company can no longer pay its debts as they fall due and is wound up, ordinary shareholders will rank last. After the liquidation process, secured creditors receive payments first, followed by unsecured creditors, preferential shareholders and then ordinary shareholders.&nbsp;&nbsp;&nbsp;&nbsp;<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span style=\"font-weight: 400;\">Preference Shares<\/span><\/h3>\n\n\n\n<p><span style=\"font-weight: 400;\">Preference shares typically attach the same rights to vote and dividend rights as ordinary shareholders though they will also have a liquidation preference. If a company is wound up, preference shareholders will have priority over ordinary shareholders to get their money back. Typically, preference shares are sought after by investors as they wish to see that the company will reimburse them before other shareholders if the company needs to be wound up.<\/span><\/p>\n\n\n\n    <div class=\"my-7 lg:my-10 border-y-2 border-gray-100 py-7 lg:py-10 flex flex-col sm:flex-row items-start gap-10\">\n                    <img decoding=\"async\" class=\"w-52 mx-auto my-0! rounded\" src=\"https:\/\/img.legalvision.com.au\/wp-content\/uploads\/sites\/2\/2021\/10\/21140438\/NZ-Startup-Manual-251x360-2.png\" alt=\"Front page of publication\"\n                 loading=\"lazy\" width=\"208\" height=\"298\">\n                <section>\n            <div class=\"text-2xl font-bold\">NZ Startup Manual: A Legal Handbook For Founders<\/div>\n            <div class=\"body-text\">\n                <p>Essential reading for anyone building their startup. This free guide includes practical advice and seven real-life case studies.<\/p>\n            <\/div>\n            \n\n<a href=\"https:\/\/go.legalvision.co.nz\/NZ-Startup-Manual.html\" class=\" block px-5 py-3.5 max-w-fit bg-orange button__hover transition rounded text-white font-bold text-lg no-underline uppercase leading-tight text-center\" target=\"\" rel=\"\">Download Now<\/a>        <\/section>\n    <\/div>\n\n\n\n\n<h2 class=\"wp-block-heading\"><span style=\"font-weight: 400;\">Key Takeaways<\/span><\/h2>\n\n\n\n<p><span style=\"font-weight: 400;\">Shareholders in a company may have different rights due to holding different classes of shares. Typically, each share carries a right to vote, the right to participate in dividends, and entitlement to any remaining capital upon winding up of the company. While a company will typically start with only ordinary shares on issue, external investors may seek to be issued preference shares that carry rights in preference to the ordinary shares already on issue.&nbsp;<\/span><\/p>\n\n\n\n<p>For more information, our experienced <a href=\"https:\/\/legalvision.co.nz\/corporate-lawyers-lp\">corporate lawyers<\/a> can assist as part of our LegalVision membership. For a low monthly fee, you will have unlimited access to lawyers to answer your questions and draft and review your documents. Call us today on <a href=\"tel:+64800005570\" class=\"AVANSERnumber dynamic-number\">0800 005 570<\/a> or visit our&nbsp;<a href=\"https:\/\/legalvision.co.nz\/membership\/\">membership page<\/a>.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span style=\"font-weight: 400;\">Frequently Asked Questions<\/span><\/h2>\n\n\n\n<div class=\"schema-faq wp-block-yoast-faq-block\"><div class=\"schema-faq-section\" id=\"faq-question-1661409285146\"><strong class=\"schema-faq-question\"><strong>What are ordinary shares?<\/strong><\/strong> <p class=\"schema-faq-answer\">Ordinary shares are the most common type of shares a company will issue. Ordinary shares come with the right to vote, the right to receive dividends and the entitlement to receive capital upon winding up the company.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1661409296223\"><strong class=\"schema-faq-question\"><strong>What are preference shares?<\/strong><\/strong> <p class=\"schema-faq-answer\">Preference shares typically attach the same rights to vote and dividend rights as ordinary shareholders though they will also have a liquidation preference.<\/p> <\/div> <\/div>\n<div class=\"not-prose m-feedback-prompt\">\n    <!-- Thumbs up\/down bar -->\n    <div class=\"m-feedback-prompt__main\">\n        <div class=\"m-feedback-prompt__title\">Was this article helpful?<\/div>\n        <div>\n            <!--span class=\"m-feedback-prompt__button--text\">Thanks!<\/span-->\n            <button type=\"button\" class=\"m-feedback-prompt__button m-feedback-prompt__button--yes\"\n                    data-analytics-link=\"feedback-prompt:yes\" aria-label=\"Agree\">\n                <i class=\"fa-regular fa-thumbs-up fa-3x\"><\/i>\n            <\/button>\n            <button type=\"button\" class=\"m-feedback-prompt__button m-feedback-prompt__button--no\"\n                    data-analytics-link=\"feedback-prompt:no\" aria-label=\"Disagree\">\n                <i class=\"fa-regular fa-thumbs-down fa-3x\"><\/i>\n            <\/button>\n        <\/div>\n    <\/div>\n\n    <!-- Feedback form -->\n    <div class=\"m-feedback-prompt__form\">\n        <div class=\"m-feedback-prompt__form--thanks \">\n            <div>Thanks!<\/div>\n            <p>\n                We appreciate your feedback \u2013 your submission has been successfully received.            <\/p>\n        <\/div>\n        <form id=\"contact-form\" class=\"m-feedback-prompt__form--form\" action=\"\" method=\"post\">\n            <input type=\"hidden\" id=\"authenticity_token\" name=\"authenticity_token\" value=\"3bc3beddae\" \/><input type=\"hidden\" name=\"_wp_http_referer\" value=\"\/api\/wp\/v2\/posts\/217173\" \/>            <input value=\"https:\/\/legalvision.co.nz\/corporations\/share-classes\/\" type=\"hidden\" name=\"currenturl\"\n                   id=\"currenturl\">\n            <input value=\"What Are Share Classes in New Zealand?\" type=\"hidden\" name=\"currenttitle\"\n                   id=\"currenttitle\">\n            <label>\n                <!-- display on thumbs-up -->\n                <span class=\"m-feedback-prompt__feedback m-feedback-prompt__feedback--yes\">\n                    Can you tell us <span class=\"font-semibold\">why<\/span> you found it helpful?\n                <\/span>\n\n                <!-- display on thumbs-down -->\n                <span class=\"m-feedback-prompt__feedback m-feedback-prompt__feedback--no text-lg\">\n                    How can we better improve this article?\n                <\/span>\n                <textarea name=\"feedbackmessage\" id=\"feedbackmessage\" required><\/textarea>\n            <\/label>\n\n            <div class=\"m-feedback-prompt__form--error\" id=\"form-submit-error\"><\/div>\n            <button id=\"submit-contact-form-button\" type=\"submit\" name=\"commit\" class=\"m-feedback-prompt__form--submit\"\n                    data-analytics-link=\"feedback-prompt:submit\">\n                Submit            <\/button>\n        <\/form>\n    <\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>As a New Zealand company with various shareholders, you might issue different kinds of shares with different rights attached to them. These are known as \u2018share classes\u2019 and refer to the different types of interests shareholders have in a company. This article will discuss the various shares a company can issue in New Zealand. Different<a href=\"https:\/\/legalvision.co.nz\/corporations\/share-classes\/\">Continue reading <span class=\"sr-only\">&#8220;What Are Share Classes in New Zealand?&#8221;<\/span><\/a><\/p>\n","protected":false},"author":13343,"featured_media":215488,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_relevanssi_hide_post":"","_relevanssi_hide_content":"","_relevanssi_pin_for_all":"","_relevanssi_pin_keywords":"","_relevanssi_unpin_keywords":"","_relevanssi_related_keywords":"","_relevanssi_related_include_ids":"","_relevanssi_related_exclude_ids":"","_relevanssi_related_no_append":"","_relevanssi_related_not_related":"","_relevanssi_related_posts":"205510,208585,208262,202499,204075,786","_relevanssi_noindex_reason":"","editor_notices":[],"footnotes":""},"categories":[14],"tags":[54,251,894,1543,1544],"class_list":["post-217173","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-corporations","tag-medium-business","tag-preference-shares","tag-large-business","tag-share-class","tag-ordinary-shares"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.1.1 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>What Are Share Classes in NZ | LegalVision New Zealand<\/title>\n<meta name=\"description\" content=\"Shareholders in a company may have different rights due to holding different classes of shares. We explain share classes in New Zealand.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/legalvision.co.nz\/corporations\/share-classes\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"What Are Share Classes in NZ | LegalVision New Zealand\" \/>\n<meta property=\"og:description\" content=\"Shareholders in a company may have different rights due to holding different classes of shares. We explain share classes in New Zealand.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/legalvision.co.nz\/corporations\/share-classes\/\" \/>\n<meta property=\"og:site_name\" content=\"LegalVision New Zealand\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/LegalVision\" \/>\n<meta property=\"article:published_time\" content=\"2022-08-25T06:39:23+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2022-09-05T02:34:42+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/img.legalvision.com.au\/wp-content\/uploads\/sites\/2\/2022\/05\/25001454\/business-image-052251.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"834\" \/>\n\t<meta property=\"og:image:height\" content=\"556\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Dan Kim\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@teresa.nurdi@legalvision.com.au\" \/>\n<meta name=\"twitter:site\" content=\"@LegalVision_law\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Dan Kim\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"4 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/legalvision.co.nz\/corporations\/share-classes\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/legalvision.co.nz\/corporations\/share-classes\/\"},\"author\":{\"name\":\"Dan Kim\",\"@id\":\"https:\/\/legalvision.co.nz\/#\/schema\/person\/b89810daadfe7a3cfa040758e317e34e\"},\"headline\":\"What Are Share Classes in New Zealand?\",\"datePublished\":\"2022-08-25T06:39:23+00:00\",\"dateModified\":\"2022-09-05T02:34:42+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/legalvision.co.nz\/corporations\/share-classes\/\"},\"wordCount\":784,\"publisher\":{\"@id\":\"https:\/\/legalvision.co.nz\/#organization\"},\"image\":{\"@id\":\"https:\/\/legalvision.co.nz\/corporations\/share-classes\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/img.legalvision.com.au\/wp-content\/uploads\/sites\/2\/2022\/05\/25001454\/business-image-052251.jpg\",\"keywords\":[\"medium business\",\"preference shares\",\"large business\",\"share class\",\"ordinary shares\"],\"articleSection\":[\"Corporate Articles\"],\"inLanguage\":\"en-NZ\"},{\"@type\":[\"WebPage\",\"FAQPage\"],\"@id\":\"https:\/\/legalvision.co.nz\/corporations\/share-classes\/\",\"url\":\"https:\/\/legalvision.co.nz\/corporations\/share-classes\/\",\"name\":\"What Are Share Classes in NZ | LegalVision New Zealand\",\"isPartOf\":{\"@id\":\"https:\/\/legalvision.co.nz\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/legalvision.co.nz\/corporations\/share-classes\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/legalvision.co.nz\/corporations\/share-classes\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/img.legalvision.com.au\/wp-content\/uploads\/sites\/2\/2022\/05\/25001454\/business-image-052251.jpg\",\"datePublished\":\"2022-08-25T06:39:23+00:00\",\"dateModified\":\"2022-09-05T02:34:42+00:00\",\"description\":\"Shareholders in a company may have different rights due to holding different classes of shares. We explain share classes in New Zealand.\",\"breadcrumb\":{\"@id\":\"https:\/\/legalvision.co.nz\/corporations\/share-classes\/#breadcrumb\"},\"mainEntity\":[{\"@id\":\"https:\/\/legalvision.co.nz\/corporations\/share-classes\/#faq-question-1661409285146\"},{\"@id\":\"https:\/\/legalvision.co.nz\/corporations\/share-classes\/#faq-question-1661409296223\"}],\"inLanguage\":\"en-NZ\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/legalvision.co.nz\/corporations\/share-classes\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-NZ\",\"@id\":\"https:\/\/legalvision.co.nz\/corporations\/share-classes\/#primaryimage\",\"url\":\"https:\/\/img.legalvision.com.au\/wp-content\/uploads\/sites\/2\/2022\/05\/25001454\/business-image-052251.jpg\",\"contentUrl\":\"https:\/\/img.legalvision.com.au\/wp-content\/uploads\/sites\/2\/2022\/05\/25001454\/business-image-052251.jpg\",\"width\":834,\"height\":556,\"caption\":\"What Franchisee Support Should I Provide?\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/legalvision.co.nz\/corporations\/share-classes\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/legalvision.co.nz\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Articles\",\"item\":\"https:\/\/legalvision.co.nz\/articles\/\"},{\"@type\":\"ListItem\",\"position\":3,\"name\":\"Corporate Articles\",\"item\":\"https:\/\/legalvision.co.nz\/category\/corporations\/\"},{\"@type\":\"ListItem\",\"position\":4,\"name\":\"What Are Share Classes in New Zealand?\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/legalvision.co.nz\/#website\",\"url\":\"https:\/\/legalvision.co.nz\/\",\"name\":\"LegalVision New Zealand\",\"description\":\"LegalVision is a commercial law firm in NZ with a commitment to innovation\",\"publisher\":{\"@id\":\"https:\/\/legalvision.co.nz\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/legalvision.co.nz\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-NZ\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/legalvision.co.nz\/#organization\",\"name\":\"LegalVision New Zealand\",\"url\":\"https:\/\/legalvision.co.nz\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-NZ\",\"@id\":\"https:\/\/legalvision.co.nz\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/legalvision.co.nz\/wp-content\/uploads\/sites\/2\/2020\/11\/LegalVision_square_logo.png\",\"contentUrl\":\"https:\/\/legalvision.co.nz\/wp-content\/uploads\/sites\/2\/2020\/11\/LegalVision_square_logo.png\",\"width\":400,\"height\":400,\"caption\":\"LegalVision New Zealand\"},\"image\":{\"@id\":\"https:\/\/legalvision.co.nz\/#\/schema\/logo\/image\/\"},\"sameAs\":[\"https:\/\/www.facebook.com\/LegalVision\",\"https:\/\/x.com\/LegalVision_law\",\"https:\/\/www.linkedin.com\/company\/legalvision-group\"]},{\"@type\":\"Person\",\"@id\":\"https:\/\/legalvision.co.nz\/#\/schema\/person\/b89810daadfe7a3cfa040758e317e34e\",\"name\":\"Dan Kim\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-NZ\",\"@id\":\"https:\/\/legalvision.co.nz\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/ad516503a11cd5ca435acc9bb6523536?s=96\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/ad516503a11cd5ca435acc9bb6523536?s=96\",\"caption\":\"Dan Kim\"},\"description\":\"Dan is a Law Graduate in LegalVision's New Zealand Commercial and Corporate team. He graduated from the University of Auckland where he obtained his Bachelor of Laws.\",\"sameAs\":[\"https:\/\/x.com\/teresa.nurdi@legalvision.com.au\"],\"url\":\"https:\/\/legalvision.co.nz\/author\/dankim\/\"},{\"@type\":\"Question\",\"@id\":\"https:\/\/legalvision.co.nz\/corporations\/share-classes\/#faq-question-1661409285146\",\"name\":\"What are ordinary shares?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"Ordinary shares are the most common type of shares a company will issue. Ordinary shares come with the right to vote, the right to receive dividends and the entitlement to receive capital upon winding up the company.\",\"inLanguage\":\"en-NZ\"},\"inLanguage\":\"en-NZ\"},{\"@type\":\"Question\",\"@id\":\"https:\/\/legalvision.co.nz\/corporations\/share-classes\/#faq-question-1661409296223\",\"name\":\"What are preference shares?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"Preference shares typically attach the same rights to vote and dividend rights as ordinary shareholders though they will also have a liquidation preference.\",\"inLanguage\":\"en-NZ\"},\"inLanguage\":\"en-NZ\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"What Are Share Classes in NZ | LegalVision New Zealand","description":"Shareholders in a company may have different rights due to holding different classes of shares. We explain share classes in New Zealand.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/legalvision.co.nz\/corporations\/share-classes\/","og_locale":"en_US","og_type":"article","og_title":"What Are Share Classes in NZ | LegalVision New Zealand","og_description":"Shareholders in a company may have different rights due to holding different classes of shares. We explain share classes in New Zealand.","og_url":"https:\/\/legalvision.co.nz\/corporations\/share-classes\/","og_site_name":"LegalVision New Zealand","article_publisher":"https:\/\/www.facebook.com\/LegalVision","article_published_time":"2022-08-25T06:39:23+00:00","article_modified_time":"2022-09-05T02:34:42+00:00","og_image":[{"width":834,"height":556,"url":"https:\/\/img.legalvision.com.au\/wp-content\/uploads\/sites\/2\/2022\/05\/25001454\/business-image-052251.jpg","type":"image\/jpeg"}],"author":"Dan Kim","twitter_card":"summary_large_image","twitter_creator":"@teresa.nurdi@legalvision.com.au","twitter_site":"@LegalVision_law","twitter_misc":{"Written by":"Dan Kim","Est. reading time":"4 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/legalvision.co.nz\/corporations\/share-classes\/#article","isPartOf":{"@id":"https:\/\/legalvision.co.nz\/corporations\/share-classes\/"},"author":{"name":"Dan Kim","@id":"https:\/\/legalvision.co.nz\/#\/schema\/person\/b89810daadfe7a3cfa040758e317e34e"},"headline":"What Are Share Classes in New Zealand?","datePublished":"2022-08-25T06:39:23+00:00","dateModified":"2022-09-05T02:34:42+00:00","mainEntityOfPage":{"@id":"https:\/\/legalvision.co.nz\/corporations\/share-classes\/"},"wordCount":784,"publisher":{"@id":"https:\/\/legalvision.co.nz\/#organization"},"image":{"@id":"https:\/\/legalvision.co.nz\/corporations\/share-classes\/#primaryimage"},"thumbnailUrl":"https:\/\/img.legalvision.com.au\/wp-content\/uploads\/sites\/2\/2022\/05\/25001454\/business-image-052251.jpg","keywords":["medium business","preference shares","large business","share class","ordinary shares"],"articleSection":["Corporate Articles"],"inLanguage":"en-NZ"},{"@type":["WebPage","FAQPage"],"@id":"https:\/\/legalvision.co.nz\/corporations\/share-classes\/","url":"https:\/\/legalvision.co.nz\/corporations\/share-classes\/","name":"What Are Share Classes in NZ | LegalVision New Zealand","isPartOf":{"@id":"https:\/\/legalvision.co.nz\/#website"},"primaryImageOfPage":{"@id":"https:\/\/legalvision.co.nz\/corporations\/share-classes\/#primaryimage"},"image":{"@id":"https:\/\/legalvision.co.nz\/corporations\/share-classes\/#primaryimage"},"thumbnailUrl":"https:\/\/img.legalvision.com.au\/wp-content\/uploads\/sites\/2\/2022\/05\/25001454\/business-image-052251.jpg","datePublished":"2022-08-25T06:39:23+00:00","dateModified":"2022-09-05T02:34:42+00:00","description":"Shareholders in a company may have different rights due to holding different classes of shares. We explain share classes in New Zealand.","breadcrumb":{"@id":"https:\/\/legalvision.co.nz\/corporations\/share-classes\/#breadcrumb"},"mainEntity":[{"@id":"https:\/\/legalvision.co.nz\/corporations\/share-classes\/#faq-question-1661409285146"},{"@id":"https:\/\/legalvision.co.nz\/corporations\/share-classes\/#faq-question-1661409296223"}],"inLanguage":"en-NZ","potentialAction":[{"@type":"ReadAction","target":["https:\/\/legalvision.co.nz\/corporations\/share-classes\/"]}]},{"@type":"ImageObject","inLanguage":"en-NZ","@id":"https:\/\/legalvision.co.nz\/corporations\/share-classes\/#primaryimage","url":"https:\/\/img.legalvision.com.au\/wp-content\/uploads\/sites\/2\/2022\/05\/25001454\/business-image-052251.jpg","contentUrl":"https:\/\/img.legalvision.com.au\/wp-content\/uploads\/sites\/2\/2022\/05\/25001454\/business-image-052251.jpg","width":834,"height":556,"caption":"What Franchisee Support Should I Provide?"},{"@type":"BreadcrumbList","@id":"https:\/\/legalvision.co.nz\/corporations\/share-classes\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/legalvision.co.nz\/"},{"@type":"ListItem","position":2,"name":"Articles","item":"https:\/\/legalvision.co.nz\/articles\/"},{"@type":"ListItem","position":3,"name":"Corporate Articles","item":"https:\/\/legalvision.co.nz\/category\/corporations\/"},{"@type":"ListItem","position":4,"name":"What Are Share Classes in New Zealand?"}]},{"@type":"WebSite","@id":"https:\/\/legalvision.co.nz\/#website","url":"https:\/\/legalvision.co.nz\/","name":"LegalVision New Zealand","description":"LegalVision is a commercial law firm in NZ with a commitment to innovation","publisher":{"@id":"https:\/\/legalvision.co.nz\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/legalvision.co.nz\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-NZ"},{"@type":"Organization","@id":"https:\/\/legalvision.co.nz\/#organization","name":"LegalVision New Zealand","url":"https:\/\/legalvision.co.nz\/","logo":{"@type":"ImageObject","inLanguage":"en-NZ","@id":"https:\/\/legalvision.co.nz\/#\/schema\/logo\/image\/","url":"https:\/\/legalvision.co.nz\/wp-content\/uploads\/sites\/2\/2020\/11\/LegalVision_square_logo.png","contentUrl":"https:\/\/legalvision.co.nz\/wp-content\/uploads\/sites\/2\/2020\/11\/LegalVision_square_logo.png","width":400,"height":400,"caption":"LegalVision New Zealand"},"image":{"@id":"https:\/\/legalvision.co.nz\/#\/schema\/logo\/image\/"},"sameAs":["https:\/\/www.facebook.com\/LegalVision","https:\/\/x.com\/LegalVision_law","https:\/\/www.linkedin.com\/company\/legalvision-group"]},{"@type":"Person","@id":"https:\/\/legalvision.co.nz\/#\/schema\/person\/b89810daadfe7a3cfa040758e317e34e","name":"Dan Kim","image":{"@type":"ImageObject","inLanguage":"en-NZ","@id":"https:\/\/legalvision.co.nz\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/ad516503a11cd5ca435acc9bb6523536?s=96","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/ad516503a11cd5ca435acc9bb6523536?s=96","caption":"Dan Kim"},"description":"Dan is a Law Graduate in LegalVision's New Zealand Commercial and Corporate team. He graduated from the University of Auckland where he obtained his Bachelor of Laws.","sameAs":["https:\/\/x.com\/teresa.nurdi@legalvision.com.au"],"url":"https:\/\/legalvision.co.nz\/author\/dankim\/"},{"@type":"Question","@id":"https:\/\/legalvision.co.nz\/corporations\/share-classes\/#faq-question-1661409285146","name":"What are ordinary shares?","acceptedAnswer":{"@type":"Answer","text":"Ordinary shares are the most common type of shares a company will issue. Ordinary shares come with the right to vote, the right to receive dividends and the entitlement to receive capital upon winding up the company.","inLanguage":"en-NZ"},"inLanguage":"en-NZ"},{"@type":"Question","@id":"https:\/\/legalvision.co.nz\/corporations\/share-classes\/#faq-question-1661409296223","name":"What are preference shares?","acceptedAnswer":{"@type":"Answer","text":"Preference shares typically attach the same rights to vote and dividend rights as ordinary shareholders though they will also have a liquidation preference.","inLanguage":"en-NZ"},"inLanguage":"en-NZ"}]}},"_links":{"self":[{"href":"https:\/\/legalvision.co.nz\/api\/wp\/v2\/posts\/217173","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/legalvision.co.nz\/api\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/legalvision.co.nz\/api\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/legalvision.co.nz\/api\/wp\/v2\/users\/13343"}],"replies":[{"embeddable":true,"href":"https:\/\/legalvision.co.nz\/api\/wp\/v2\/comments?post=217173"}],"version-history":[{"count":3,"href":"https:\/\/legalvision.co.nz\/api\/wp\/v2\/posts\/217173\/revisions"}],"predecessor-version":[{"id":217365,"href":"https:\/\/legalvision.co.nz\/api\/wp\/v2\/posts\/217173\/revisions\/217365"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/legalvision.co.nz\/api\/wp\/v2\/media\/215488"}],"wp:attachment":[{"href":"https:\/\/legalvision.co.nz\/api\/wp\/v2\/media?parent=217173"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/legalvision.co.nz\/api\/wp\/v2\/categories?post=217173"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/legalvision.co.nz\/api\/wp\/v2\/tags?post=217173"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}