Compare types of shares in joint stock companies

Only types of joint stock companies are allowed to issue shares to raise capital. The company's capital will be divided into equal parts called shares. So are there types of shares in the company that are widely applied today? Join Yes Office to learn more detailed information about shares.

What are shares?

Shares is the capital of the company. The company's initial capital will be divided into equal parts called shares. People who own shares are called shareholders of the company. As long as you own shares of a company, you are a shareholder of the company. And to legally own shares, companies will issue shareholders a certificate of ownership of those shares called shares. Thus, the form of shares only appears for businesses in the form of joint stock companies.

Shares are also divided into many different types, each person who owns different types of shares has different rights and obligations.

Popular types of shares in companies today nay

What types of shares are commonly used in companies today? Let's take a look at the common types of shares today.

Common shares

This is a mandatory type of shares for joint stock companies section. Accordingly, the owners of common shares are called common shareholders. And they are also the owners of the company, so they are the ones who make important decisions about the company's business activities. What rights do shareholders who own common shares have? That is:

• Right to attend and express opinions in meetings of the General Meeting of Shareholders. The right to vote directly or through your legally authorized representatives. According to regulations, each common share is equivalent to one vote.
• Receive full dividends according to the decision of the General Meeting of Shareholders east.
• Have priority to buy newly offered shares corresponding to the percentage of shares of common shareholders in the company ty.
• The right to freely transfer your shares to others. Except for the disallowed cases clearly stated in the Enterprise Law (Clause 3, Article 199 and Clause 1, Article 126).
• Other rights and obligations are clearly stipulated in the Enterprise Law(Clause 2, Article 144).

Preference shares

One of the types of shares Another common thing in companies is preference shares. This type of shares is divided into different types such as:

Dividend preference shares

Is a type of share that pays higher dividends than stock dividends common shares or other types of shares. Thus, according to a fixed annual period, owners of dividend preference shares will receive fixed dividends and bonus dividends. SEE MORE:

• Comparing limited liability companies and joint stock companies
• Questions about joint stock companies section
• What is needed to establish a joint stock company
• Minutes of capital contribution of joint stock company

People are allowed to buy dividend preference shares who meet the conditions prescribed by the company's charter or the company's General Assembly. Shareholders who own dividend preference shares have the following rights and obligations:

• Receive dividends on schedule.
• Receive the remaining assets corresponding to the company's share ownership ratio.
• Other basic rights such as common shares, except the right to participate in meetings and vote at the General Meeting or to intervene in the company's internal affairs.

Demonstrative preference shares resolve

Another type of shares is voting preference shares. The advantage of this type of stock is that it has more voting rights than common shares according to the company's charter. Voting preference shares are usually held by organizations authorized by the Government or founding shareholders of the company. According to regulations, voting preferences of the company's founding shareholders are only valid for 3 years from the date the company receives the business registration certificate. After that period, the voting preferences of founding shareholders will be converted to common shares. The rights and obligations of shareholders who own voting shares are the same as common shareholders. In addition, there are additional voting rightsResolve important issues under the authority of the General Meeting of Shareholders in accordance with the provisions of the Company's Charter.

Refundable preferred shares

This type of share allows the company to return the capital contributed to the company through the number of shares. The amount of refunded capital will be implemented in accordance with the provisions of the company's Charter.

People are allowed to buy refundable shares if they meet the conditions prescribed in the company's Charter or the General Meeting of Shareholders. The rights of shareholders who own redeemable preferred shares are the same basic rights as common shareholders, except the right to vote, attend meetings or nominate people to the General Meeting. SEE MORE:

• Company establishment consulting

In addition, there are other types of shares as prescribed in the Company Charter ty. If you want to learn more about joint stock companies, types of shares in the company, professional business establishment consulting, you can contact Yes Office directly for answers. In addition, if you want to establish a company, you need the following preparation steps:

•  You complete the procedure to register a company with the Department of Planning and Investment.  
•  You need an address to register as a company headquarters. This must be a private home or virtual office address, cannot use an apartment address.
•  After establishing the company company, you need to periodically declare taxes to the General Department of Taxation (quarterly), regardless of whether your company generates revenue or not.
• You need to invest in marketing, to find new customers and develop a sustainable business. You need a brand identity (name, logo, colors, symbols, slogan...) and supporting digital marketing solutions (setting up a website, running Google, Facebook ads, SEO, investing in Content Marketing, Email Marketing...).

Yes Office virtual office service always accompanies you to solve the above problems.

• When completing company registration procedures, Yes Office helps you complete the procedures The state is cumbersome and complicated. You just need to pay us the correct amount as the business registration fee with the General Department of Taxation (there is a red invoice from the Tax Department if you need to compare). As for the service fee, we will donate ityou.
• You don't need to rent a large space, just rent a virtual office to establish a company. The cost of renting a virtual office is very reasonable (from only 530,000 VND / month). Yes Office is located in a prime location, right on Nguyen Hue flower street, district 1, with the address 68 being a feng shui number.
• Yes Office always has tax experts with many years of experience to provide FREE consultation. FEES for your fledgling company. When you rent a virtual office at Yes Office and also use our tax services, every tax declaration process becomes even more convenient.  
• We have many years of experience in designing SEO-standard websites, building brand identities, and implementing effective digital marketing activities through Google and Facebook channels, bringing great economic efficiency to businesses.

Please contact us immediately for free consultation via hotline: 0942 688 339.