Classification of Company’s Shares in the Legal Practice of European Countries: In Search of the Best Model

Abstract

This paper outlines definition and description of the concept of shares, their legal and factual nature, specifics of capacities conferred by them. The Thesis also provides analysis of the notions of share classes and class rights, discuss the concept and constituent elements of dual-class companies, phenomenon of separation of control and ownership rights, employment of hybrid securities, as opposed to the companies with homogeneous share structure. This research is based on the legal practise of various EU’s Member States, with particular attention to the German and Finnish models, as representatives of the most strict and the most flexible corporate legal traditions in the EU. The research is directed on searching for the universal model of shareholding that is able to suit demand of all participants of corporate relations, as well as demands of the contemporary business environment in the EU.