Ordinary Shares

A share entitling its holder to a dividend, if any, after the payment of the fixed dividend in respect of preference shares. Ordinary shares carry the residual economic value of a company. They carry rights to distribution of profits through dividends, to the surplus assets of a company on a winding up and to votes at general meetings of the company. resolution passed by a simple majority of members present at a general meeting of a company is known as an Ordinary Resolution.