Copyright 2023 Iason Skouzos TaxLaw.
All Rights Reserved.

Back to top

Types of shares that can be issued by an S.A. company

Iason Skouzos - TaxLaw > Practice Areas  > Company Law  > Types of shares that can be issued by an S.A. company

Types of shares that can be issued by an S.A. company

A company limited by shares (S.A. company) may issue the following types of shares:

Common shares :
They offer rights to profits and voting rights and constitute the most common class of shares.


Preferential shares :
They may be issued without voting rights (article 38, paragraph 4 of Law 4548/2018) and constitute an exception to the principle of equality of article 36. Their issuance is more appropriate to facilitate the coverage of the share capital in the event of an increase of the share capital, rather than as a reward to existing shareholders.
The most common advantages offered by preference shares are:
a. the withdrawal of part or all of the distributed dividend before the ordinary shares
b. Preferential return of capital paid by holders of preferred shares from the proceeds of a reduction of capital or liquidation of corporate assets
c. Preferential payment of dividends for the years in which no dividend was paid
d. Fixed dividend or participation in a certain percentage of profits
e. Right to receive a certain amount of interest
f. Other possible privileges provided for in the articles of association of a pecuniary nature
The non-voting preference shares otherwise confer all the rights arising from the shareholding relationship and are convertible, provided that provision is made for this when they are issued.


Redeemable shares :
These shares may be issued by the company (article 39 paragraph 1 of Law 4548/2018) either as ordinary shares or as preference shares with (or without) voting rights. The important thing in this particular case is that these shares must be redeemed by the company either by declaration by the latter or by the shareholder who will participate.


Restricted shares:
Their transfer is subject to the approval of the company as well as other statutory restrictions.



The information is accurate to the best of our knowledge as at the time of writing. We have no obligation to update it. We accept no responsibility against any third party who is not a client of the firm and has not signed the terms of our engagement.

error: Content is protected !!