Can different shareholders have different rights?

 

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2. Can different shareholders have different rights?

The company's memorandum and articles (see question 11) may allow the company to issue different classes of shares. For example, some companies issue both voting and non-voting shares. This can be useful if you want to issue shares to other investors but retain voting control.

As a shareholder, you will only have the rights attached to the class of shares that you own. The rights attached to a class of shares cannot be altered unless the holders of at least three-quarters of the class shares consent (unless the company's articles say otherwise).