CLASSIFICATION

OF SHARES
 Par Value and No Par Value

Par Value with a nominal value

No Par Value shares deemed fully

paid and non-assessable, but may not
be issued for a consideration less than
the value of P5.00
VOTING AND NON-VOTING

Voting can vote

Non-Voting cannot vote

 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
COMMON AND PREFERRED

Common shares the residual

ownership interest in the corporation; a
basic class of stock ordinarily and
usually issued without extraordinary
rights or privileges and entitles the
shareholder to a pro rata division of
profits
COMMON AND PREFERRED

Preferred shares entitle the holder

thereof to certain preferences over the
holders of common stock

a)Preferred shares as to assets

b)Preferred shares as to dividends
 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