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BUSINESS TIPS

What is a Class Meeting?

A class meeting is a meeting of shareholders, where the only shareholders in attendance that can vote are those that hold a particular class of shares. When the rights of the holders of a class of shares are to be varied by the company, it may be necessary to hold a class meeting to ensure that the shareholders of that class of shares can vote on the matter. At a class meeting only matters that concern that class of shares can be discussed. Any matters affecting more than one class must be discussed at a general meeting or dealt with using the usual written resolution procedure if the company is a private limited company.

For example if a company has Ordinary A shares and Ordinary B shares and the company wants to change the voting rights of only the Ordinary B shares, a meeting would be called for the Ordinary B shareholders. The Ordinary B shareholders could then vote on the variation, but would not be able to make a decision on other matters relating to the company.

People other than the shareholders are able to attend and speak at a class meeting, such as the company’s directors and the company’s auditors. However, if these parties are not members of the particular share class, they would not be able to vote at the meeting.

If you require assistance altering your class of shares or holding a class meeting please contact us on 020 8429 9245 or at info@wisteria.co.uk.