§ 13228 Share Class Requirements

This law says that if a company has different types of shares, it must clearly explain what each type is, how many there are, and what special rules or benefits each type has.

Key Takeaways

•If a company has different kinds of shares, it must describe each kind.
•The company must say how many shares of each kind there are.
•The company must explain any special rules or benefits for each kind of share.

Example

A company wants to sell two kinds of shares: one where owners get money first if the company is sold, and another where owners get to vote on big decisions.

The company must write down exactly how many of each type of share there are and what makes them different, so everyone knows the rules.

If the shares are to be classified, the articles shall contain a description of the classes of shares and a statement of the number of shares of each kind or class and the nature and extent of the preferences, rights, privileges and restrictions granted to or imposed upon the holders of the respective classes of stock. (Added by Stats. 1953, Ch. 207.)

This law says that if a company has different types of shares, it must clearly explain what each type is, how many there are, and what special rules or benefits each type has.

Key Takeaways

•If a company has different kinds of shares, it must describe each kind.
•The company must say how many shares of each kind there are.
•The company must explain any special rules or benefits for each kind of share.

Example

A company wants to sell two kinds of shares: one where owners get money first if the company is sold, and another where owners get to vote on big decisions.

The company must write down exactly how many of each type of share there are and what makes them different, so everyone knows the rules.

Key Takeaways

Example

Key Terms

References

§ 13228 Share Class Requirements

Key Takeaways

Example

Key Terms

References

Key Takeaways

Example

Key Terms

Related Statutes

References

Key Takeaways

Example

Key Terms

Related Statutes

References