A-Shares and B-Shares: What's the Difference?

A company can have several classes of shares. These are often referred to as A- and B-shares, but the letters carry no universal meaning. The rights are determined by the company's articles of association.

What can be different?

The share classes can have different voting rights, dividend entitlements, redemption terms, or other financial and organisational rights within the scope of the law. For instance, one A-share might carry more votes than one B-share, but this must be stated in the articles of association.

If the articles of association do not establish classes with varying rights, the principle of equal rights for all shares applies.

Why do companies use share classes?

Founders may wish to maintain control while new investors contribute capital. Family-owned companies might separate ownership and voting power. Investors must understand both the financial rights and influence before making a purchase.

What should you check?

Read the current articles of association, share register, shareholder agreement, and issuance documents. Percentage of ownership alone does not always reflect voting percentage. When assessing actual control, the voting rights of the share classes must be taken into account.

Share classes on Proffi

Proffi should display the number of shares per class, nominal value, and registered differences in rights when such data is available. Voting control should not be calculated solely from ownership percentage if the company has multiple classes. The source and document date must be visible.