Entrepreneurship & Small Business

Different Share Classes in a corporation

  • Last Updated:
  • Dec 14th, 2020 4:47 pm
[OP]
Banned
Mar 16, 2017
49 posts
18 upvotes
Toronto

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
Deal Expert
User avatar
Aug 2, 2010
15193 posts
4943 upvotes
Here 'n There
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.
[OP]
Banned
Mar 16, 2017
49 posts
18 upvotes
Toronto
Thank you eonibm! sounds like it's more of record keep type of works on myself (nothing to do with CRA).
Deal Expert
User avatar
Aug 2, 2010
15193 posts
4943 upvotes
Here 'n There
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.
Newbie
Dec 6, 2013
45 posts
7 upvotes
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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