What are "Classes" of shares?
Updated over a week ago

Shareholders’ rights and benefits can differ if the shares are divided into different types or “classes”. Each share class may have a variety of characteristics associated with them including voting rights, dividend rights and liquidation preference.

Broadly, there are two classes of shares that are applicable to a startup: Ordinary Shares and Preferred Shares.

Clara categorizes shares as Ordinary, Ordinary (non-voting) or Preferred Shares. The rights attaching to the different classes of shares are set out in a company’s Articles of Association.

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