How to add shareholders in a different classes?

[right4you]

Currently I am the only shareholder and director of the company. The company has two classes, class A and B. I am class A shareholder (with voting right). I am wondering how to add shareholders to class B. And if it is possible, how to add more classes to the company. Many thanks.

[confused student]

If the corporation wishes to create NEW classes of shares, then Articles of Amendment must be filed since the corporation does not have such a share authorization and is asking for such rights. In that case, you will definitely need a shareholders and board resolution and must file with the government the applicable Articles of Amendment. Usually that means getting a lawyer and accountant (to value the corporation and shares).

Not necessarily. The articles of incorporation may allow for the issuance of an unlimited number of shares in any class.

[Just Confused]

Dealon (as always) is right about the creation of new classes of shares. That is best done at the outset or else you have to pay addditional rubles to the governing authority; province or feds to get the new shares classes added to the companies governing documents.

But I think the OP's question was simply how to issue shares in an already existing class. And that is a simple exercise you can do without fees by following the setup of governing documents for the corporation.

Dealon and I agree to disagree on the debate of using a lawyer vs. non-lawyer template-style entity setting up your corporation. I've been quite successful (admittedly lucky) without using a lawyer to set up my various corporations, and it was in fact a non-lawyer that pointed out the tax advantages of using of multiple classes of non-voting shares on which different dividends can be paid in any given year to split income across several family members.