Types of Shareholders

By on 31 Oct, 2023

Understanding the Different Types of Shareholders in a Company Introduction Shareholders play a crucial role in the structure and governance of companies, as they own a portion of the company through their investment in shares. In Australia, the two primary types of shareholders are common shareholders and preferred shareholders. Both shareholder types possess distinct characteristics, rights, and benefits. This article aims to provide an in-depth analysis of the differences between common and preferred shareholders in Australian companies. Common Shareholder Common shareholders are the most prevalent type of shareholders in Australian companies. They own what are known as ordinary shares, which represent an equity interest in the company. Common shareholders have several rights and privileges, which are outlined below. a) Voting Rights One of the most significant distinctions between...