Classes of Share Capital (formerly called Capital Stock)
B. As to the Value Assigned to the Share Capital
A. As to Preference over Dividend/Asset Distribution
1. Ordinary Share Capital (formerly called common stock)-
This is an ordinary share capital stock that entitles the holder
thereof (called ordinary shareholder) a pro rata share of
dividends declared or a share in the distribution of the net assets
in the event of liquidation without any preference or priority over
the other shareholders.
2. Preference Share Capital (formerly called preferred stock) -
This is a special class of share capital that entitles the holder
thereof (called preference shareholder) preference or priority
over the ordinary shareholders with respect to dividend payment
or distribution of net assets in the event of liquidation, or both.
a. Non-Cumulative Preference Share Capital - The
holder of this class of share capital is entitled to receive
only the current year’s fixed dividend in the event of a
dividend declaration. Past years undeclared dividends are
forfeited.
b. Cumulative Preference Share Capital - The holder of
this class of share capital has the right to collect dividends
in arrears (dividends not declared for the past years)
including the current year’s dividend before dividend
payments can be made to the ordinary shareholders.
c. Non-Participating Preference Share Capital - The
holder of this class of share capital is not entitled to receive
additional dividend beyond its fixed dividend stipulated in
the Articles of Incorporation.
d. Participating Preference Share Capital - The holder
of this class of share capital has the right to receive
additional dividend in excess of the fixed dividend but only
after both the preference and ordinary shareholders have
received the same percentage of dividend. The excess
earnings declared will be distributed on a pro rata basis.
1. Par Value Share Capital - This is a share capital that contains
a specific or fixed value (called par value) per share printed in
the *stock certificate.
2. No Par Value Share Capital - This is a share capital without a
specific value per share printed in the stock certificate.
 
C. As to Voting Power
1. Voting Share Capital - A share capital that has a voting right.
2. Non-Voting Share Capital - A share capital that has no voting
right.
 
D. Others
1. Treasury Share (formerly called Treasury Stock) - This is a
share capital issued and subsequently acquired back by the
corporation with the intention of re-selling or re-issuing it.
2. Convertible Share - This is a share capital that may be
converted into another class of share capital or corporate
securities at the option of the holder.
3. Delinquent Share - This is a share capital that has been
subscribed (contracted to be purchased) and partially paid but the
subscriber defaulted in paying the balance of the subscription).
4. Founder’s Share - This is a share capital issued to the
founders of the corporation. This is usually the most privileged
stock.
5. Promotion Share - A share capital issued to owners of natural
resources or rights connected therewith as compensation for
transferring their ownership or rights to the corporation.
6. Redeemable Share - This is a share capital callable at some
future date at the option of the corporation.
7. Share in Escrow- Is share subject to an agreement by virtue of
which the share is deposited by the grantor or his agent with a
third person to be kept by the depositary until the performance of
a certain condition or the happening of a certain event contained
in the agreement. (Cannon Vs. Handley, 12 P.315)