The authorized capital of Equity Associates is comprised of three classes of common shares which provide respective holders equal rights to distributions and other financial benefits.
These three classes differ in terms of voting rights and special rights.
Class A Shares are issued to the 250 Financial Planners and will comprise 49% of the common shares when fully subscribed.
Class A shareholders will elect two persons to join the Board of Directors.
Class A Special Shareholders’ Approval
The approval of 75% of the Class A shares will be required for:
A) the sale of all or substantially all of Equity Associates assets
B) any material change in the nature of the business.
Class B Shares will be represented by one individual on the Board of Directors.
Class C Shares are issued to the Chairman Bob Goodish, carry 51% of the voting rights of all outstanding issues with the exception of A and B above.