Professional Documents
Culture Documents
OF SHARES
CUMULATIVE
AND NON-CUMULATIVE
Cumulative entitled not only to
payment of current dividends but
also back dividends not previously
paid
Non-cumulative entitled to
payment of current dividends that
are paid from unrestricted retained
earnings
SHARE IN ESCROW
- Held by a third person to be
released only upon the
performance of a condition or the
happening of a certain event
contained in the agreement
- Not entitled to the rights of a
stockholder until the conditions set
forth for the release of such shares
are fully met.
FOUNDERS SHARE
May be given certain rights and privileges
not enjoyed by the owners of other stocks,
provided that where the exclusive right to
vote and be voted for in the election of
directors is granted, it must be for a limited
period not to exceed five (5) years subject to
the approval of the SEC. The five-year
period shall commence fro the date of the
aforesaid approval by the SEC.
-
REDEEMABLE SHARE
- May be purchased or taken up by the
corporation upon the expiration of a
fixed period, regardless of the
existence of unrestricted retained
earnings in the books of the
corporation, and upon such terms and
conditions as may be stated in the
articles of incorporation
TREASURY SHARE
- A share of stock which has been issued and fully
paid for, but subsequently reacquired by the
issuing corporation by purchase, redemption,
donation, or through some other lawful means
- Has no effect on the stated capital
- Do not have voting rights, pre-emptive rights
- No dividends are paid on treasury shares