BUS 251 Lecture Notes - Lecture 10: Share Capital, Financial Statement, Retained Earnings
14 May 2016
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The maximum number of shares that a company can issue, as specified in the articles of incorporation a. i. 2. Issued shares: what has been sold a. ii. 1. a. ii. 2. Shares that have been sold by the company. Classes: they differ in the rights that accrue to the shareholders and information is disclosed in the notes to the financial statements. a. iii. 1. Represent basic voting ownership rights of the company a. iii. 1. b. At least one class of the company"s common shares must have all three of the following rights: a. iii. 1. b. i. Vote at meetings of the company"s shareholders a. iii. 1. b. ii. Share in the company"s net asset upon liquidation a. iii. 1. c. Purchase subsequent issues of shares (pre-emptive right) a. iii. 1. c. ii. Preferred shares: get paid first, no voting rights a. iii. 2. a. Have preference over common shares in one or more areas: a. iii. 2. a. i. Receiving a return on their share capital in the event of company liquidation a. iii. 2. b. If a dividend is declared, preferred shareholders will receive dividends before common shareholders a. iii. 2. c.
