Incorporation & Corporate

Share Class

Also called: Common Shares, Preferred Shares

A category of shares carrying a defined set of rights — typically to vote, to receive dividends, and to share in assets on wind-up.

Common shares usually vote and carry the upside; preferred shares typically get paid first on a distribution and may not vote. Companies often create several classes so different participants hold different economic and control rights.

Why it matters: share classes determine control and payout order. Investors almost always negotiate for a class with protective terms, and adding one later requires amending the articles.

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Share Class — Canadian legal glossary | Lawkin — Lawkin