Multiple Classes of Shares and UK Limited Companies
Whilst most UK limited companies usually have just one class of share, it is possible and often desirable for a company to have two or more distinct groups of equities in existence at any one time by creating additional classes of shares.
In the example above, it can be seen that the three different classes of share essentially operate independently of each other in terms of how many units have been issued and the rights which are attached.
An individual Shareholder can hold more than one class of share in the same company and benefit from the rights which pertain to the multiple groups. For example, person A can hold 250 Ordinary Class A and at the same time own 1000 Ordinary Class B shares. They would possess 1250 of the available 2250 voting rights and be eligible to receive 250/900 of the dividends payable.
Calculating Holdings within a Company with Different Classes of Share.
When determining the total holding which an individual shareholder has in a particular limited company, it is necessary to look at the rights afforded to the different classes of shares. In the above example, where the Class C shares were non voting then when calculating voting rights they would be removed from the calculation. The equation would then focus solely on the percentage of Class A and B shares owned by the individual on the basis that these are the only types which carry voting rights.
Taking the above example, the entitlements to dividends would negate the Class B shares and the calculation of how much an individual is due would focus solely of their holdings of the Ordinary Class A and C types of equity.