Different Share Classes in a corporation

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Dec 14th, 2020 4:47 pm

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Feb 28th, 2018 12:57 pm

mazhanlv [OP]: Banned; Mar 16, 2017; 49 posts; 18 upvotes; Toronto

Feb 28th, 2018 12:57 pm

Different Share Classes in a corporation

If I'd like to issue two different share classes, A and B. Should I just specify in Article of Incorporation stating something like Class A: 100 shares, Class B: 100 shares?

How do I assign these different shares to each individual shareholders? Do anyone know?

Many thanks!

4 replies

Feb 28th, 2018 1:11 pm

eonibm: Deal Expert; Aug 2, 2010; 15193 posts; 4943 upvotes; Here 'n There

Feb 28th, 2018 1:11 pm

just issue unlimited each

Let them sign share subscription form, record the payment for the shares and issue them a share certificate which you can get at Staples and record on it the type of shares they were issue. Keep a share register showing the date, shares issued, to whom, type, cost per share and total.

+1

Feb 28th, 2018 2:51 pm

mazhanlv [OP]: Banned; Mar 16, 2017; 49 posts; 18 upvotes; Toronto

Feb 28th, 2018 2:51 pm

Thank you eonibm! sounds like it's more of record keep type of works on myself (nothing to do with CRA).

Mar 1st, 2018 2:14 pm

eonibm: Deal Expert; Aug 2, 2010; 15193 posts; 4943 upvotes; Here 'n There

Mar 1st, 2018 2:14 pm

CRA doesn't care about who gets what shares. Can you imagine what a workload it would be if they had to keep track of all the share ownership of public and private companies in Canada on an ongoing basis? And for what reason? All they care about is getting their share of taxes when disposed.

Dec 14th, 2020 4:47 pm

shahrit: Newbie; Dec 6, 2013; 45 posts; 7 upvotes

Dec 14th, 2020 4:47 pm

eonibm wrote: ↑ just issue unlimited each

Let them sign share subscription form, record the payment for the shares and issue them a share certificate which you can get at Staples and record on it the type of shares they were issue. Keep a share register showing the date, shares issued, to whom, type, cost per share and total.

I have already issued two shares - one each to myself and my spouse as another shareholder at the initial incorporation of the company. Can I now add another class of share for myself only to issue preferred shares that entitles dividend only to this new class of shares issued? If so, what is the requirement?

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