Share - This is equity security, giving rights to its owner (shareholder) to receive part of the profit joint-stock company in the form of dividends, as well as the right to participate in governance joint-stock company and part of the property, remaining after its liquidation.
Category Shares:
Distinguish Ordinary And Privileged stock.
- Ordinary stock give the right to participate in the management of society (1 stock corresponds to one vote at a meeting of shareholders, excluding cumulative voting) and participate in the profit sharing joint-stock company. Payment source dividends on ordinary shares is the net profit of society. The size dividends determined by the company's board of directors and recommended to the general meeting shareholders, which can only reduce the size dividends comparatively recommended by the board of directors.
- Preference shares may impose restrictions on participation in management, and can also give additional rights in management (not necessary), but give constant Dividends. Russia has significant restrictions on participation in the management of companies, what is caused by, that the mass privatization of enterprises in accordance 2 And 3 type provided for the transfer of Privileged stock labor collective, while depriving him of the right to vote at meetings of shareholders.
Dividends on Privileged shares can be paid out of profit, and from second sources – in accordance with the company's charter. In 2007 under Russian law, if by Privileged shares not paid dividends, then they give the shareholders the right to vote at the general meeting of shareholders.
Preference shares are split into:
BUT) Privileged have a number of privileges in exchange for the right to vote. Their holder has established the amount of income at the time of issue and placement valuable papers. The size of the liquidation value has been established. Priority in calculating these payments in relation to ordinary.
B) Cumulative (accumulating). Privileges are the same. The obligation to pay dividends is retained and accumulated. Fixed term of dividend accumulation. In case of non-payment dividends no voting rights.
Analogue of preferred shares:
Founder's share (founders share) – Share, distributed among the founders of joint-stock companies and giving them separate pre-emptive rights. Holders of such shares may: have an additional number of votes at a meeting of shareholders; enjoy the priority right to receive shares in the event of their subsequent issues; play a major role in resolving all issues, related to the activities of joint stock companies.
