What type of Shareholding is this?
What type of Shareholding is this?
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Hyper10

Original Poster:

432 posts

199 months

Wednesday 5th December 2012
quotequote all
A customer of ours lists 2 classes of shares, ordinary full shares held by a large company.
The Director who runs the business has a class of share they list as B1 "Non-voting, Non-participating Dividend only".

Are these shares considers equity, that is does the director own any of the business

Eric Mc

125,763 posts

295 months

Wednesday 5th December 2012
quotequote all
The are part of the equity. But they do not confer any voting rights to the holders.

sumo69

2,164 posts

250 months

Wednesday 5th December 2012
quotequote all
Non participating means they may not have rights to a share of the assets on a liquidation or more importantly similar terms on a sale.

These are purely being used as a tax mitigation device for his "salary".

David

Hyper10

Original Poster:

432 posts

199 months

Friday 7th December 2012
quotequote all
Thanks for the replies.