Issue of Shares

The shareholder can either be an individual, a body corporate, an HK resident or a foreigner, above the age of 18. They are entitled to the dividend of the company as a section of their nominal share value. If the corporation undergoes bankruptcy, they're liable to receive the assets of the corporation after its distribution among the creditors.

However, as compared to the administrators, shareholders won't usually be involved in the process of running the corporation. But, they are required to convene a general meeting and must agree upon the problems associated with the management of the corporation. Shareholders may have personal liability to the extent of the shares they own within the company.

The rights of shareholders can vary supported the kinds of shares they're holding, also to the particularities included therein company’s Articles of Association or the shareholder’s agreements.

Some classes of shares possess the rights of the shareholders. Here are general descriptions for a few of the classes of the shares that everybody should know-

• Ordinary shares: These are the foremost common sort of share, usually companies will only issue this sort of shares. Ordinary shares cover equal rights pro-rata on the basis of the number of shares owned by shareholders, in respect of voting or receiving dividends or distributions in liquidation.
• Preference shares: preference shares are those shares of the company which offers special rights to the dividends, or distributions in liquidation. The voting rights of those shares could also be different from the rights attached to the standard shares. In some special cases, it can only be practiced when the dividend of preferred stock is behind. The dividend is distributed among the shareholders consistent with their fixed proportion of the share’s nominal values. In short, if no dividend is announced within the year, then the arrears are often transferred to the subsequent year.
• Non-voting shares: Although most of the rights of the shares are associated with the standard shares, the holders of non-voting shares are not susceptible to choose the shareholders’ general meeting.
• Deferred shares: Deferred shares are the shares that enjoy limited rights to the dividends of the corporation. Generally, they're considered as non-voting shares. This sort of shares ranks behind the preference and common stock . It's because they don’t have the proper to the assets of the corporation undergoing bankruptcy until all common and preferred shareholders are paid.
• Redeemable shares: Redeemable shares are usually issued on the terms that the corporate or shareholders may repurchase them in the future. The date could also be fixed, or it should be supported by the director’s discretion (still it's consistent with the mechanism began in their terms of issue).

In order to manage and issue the shares of your Hong Kong company, let us assist you . The simplest thing about this is often that it's a free application which will help to issue and track the shares of your company effectively.