Digital Notary
  • Introduction to Digital Notary
    • πŸ‘‹Welcome to Digital Notary
    • ❓How does it work?
    • πŸ†ŽA Class Shares vs B Class Shares
  • Establish a new B.V.
    • πŸ†•Onboarding process
    • πŸ“Notary Process
    • πŸ‘¨β€βš•οΈSecond Director
    • πŸͺͺUBO Verification
    • πŸ“–First / Extended financial year
  • Statutes
    • πŸ“„Statutes summary
    • πŸ“–Full Statutes
  • Onboarding Investors
    • πŸ›€οΈInvestor flow
    • πŸ§‘β€πŸ€β€πŸ§‘Shareholders
  • Validation process
    • πŸ§‘Personal investor account
    • 🏦Company investor account
  • Share Tranfer and Issue
    • πŸ’±Issue new shares
    • 1️Primary Market Issue
  • Document signing
    • ✏️Introduction to document sigining
    • πŸ“ΆBoard decision for new share issue
    • 🀝License agreement
  • Frequently asked questions
    • ❔Investor Questions
    • ❓Company Questions
  • Documents
    • Privacy statement
    • Terms & Conditions
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  • A Class Shares vs B Class Shares
  • Class A Shares:
  • Class B Shares:
  1. Introduction to Digital Notary

A Class Shares vs B Class Shares

A Class Shares vs B Class Shares

In the Digital Notary , shares are categorized into two distinct classes:

Class A and Class B shares.

Each class has specific characteristics and rights that cater to different types of investors and company needs.

Class A Shares:

  • Voting Rights: Class A shares come with full voting rights, making them ideal for founders and venture capitalists who wish to have a say in the company's strategic decisions.

  • Ownership: Typically issued to founders, early investors, and key stakeholders, Class A shares provide control over the company’s direction and important corporate actions.

  • Dividends and Rights: Holders of Class A shares are entitled to dividends and have a significant influence on major decisions, such as mergers, acquisitions, and changes to the company's structure.

Class B Shares:

  • Non-Voting Rights: Class B shares do not carry voting rights, making them suitable for small investors or those who are interested in financial returns without being involved in management decisions.

  • Meeting Rights: Although they lack voting power, Class B shares grant holders the right to attend and speak at shareholder meetings, ensuring transparency and inclusivity.

  • Dividend Rights: Class B shareholders are entitled to dividends, similar to Class A shareholders, making these shares an attractive option for investors seeking income without governance involvement.

Benefits of Different Share Classes:

  • Flexibility in Capital Raising: By offering two classes of shares, companies can attract a diverse range of investors. Class A shares appeal to those seeking control, while Class B shares attract those interested in financial returns.

  • Strategic Control: Founders and key stakeholders can maintain control over the company’s decisions through Class A shares, even as they raise capital from a broader investor base.

  • Enhanced Corporate Governance: The distinction between voting and non-voting shares helps balance the need for governance and operational control with the desire to raise capital efficiently.

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Last updated 10 months ago

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