class rights

class rights

rights that attach to a particular class of shares but not to another class or to shareholders generally; such rights maybe created by a company's memorandum of association or articles of association and may relate to such matters as the right to a dividend, the right to share in surplus assets if the company is wound up, and the right to attend and vote at company meetings. The particular relevance relates to occasions when the company in general meeting wants to alter its capital (or take other action) that will affect the rights of particular classes of shareholders differently from others.

Collins Dictionary of Law © W.J. Stewart, 2006