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...

Raising Capital as a Small Business in Australia

By on 30 Apr, 2023

Funding is crucial for anew business to launch and for establishedbusinesses to grow. But how does it work? What options are available? who and where from? What are the limitations, obligations, compliances, and legal framework to observe? How to prepare for fund raising and what are the best practices? Understanding Capital Raising for Australian Private Companies Capital raising is a crucial process for any business, providing the necessary funds to fuel growth, innovation, and sustainability. For Australian private companies, navigating the complex landscape of capital raising can be challenging. This comprehensive guide will explore the various options available, the legal framework, and best practices for successfully raising capital. Capital raising refers to the process of obtaining funds to finance business operations, typically through equity or debt financing. Private...