SunRice has two classes of shares: A and B.
A Class Shares are redeemable preference shares which confer on their holders the right to vote at general meetings. They are not quoted or listed on any exchange and can only be held by Active Growers (and persons whom the Directors believe, on reasonable grounds, will become Active Growers).
No person may hold more than five A Class Shares. However, the right to vote is based on one member, one vote. This means that only one vote can be cast per A Class Shareholder at a general meeting, irrespective of the number of A Class Shares held.
A Class Shareholders have no right to receive dividends or distributions, other than the right to be repaid the amount paid up on the A Class Share on redemption or a winding up of SunRice (the amount paid up on A Class Shares is currently nil).
In practical terms, the voting rights held by A Class Shares give A Class Shareholders control over the election of Directors and any changes to the Constitution, and therefore, Control of SunRice.
B Class Shares confer on their holders the right to receive dividends, as determined by the Board. They have only limited voting rights, which generally relate to circumstances where there is a variation of their class rights. Each B Class Shareholder has the right to participate equally in the distribution of any surplus on a winding up of SunRice, after the repayment of any amount paid up on the A Class Shares (which is currently nil).
B Class Shares are listed on the ASX. However, no person (together with their Associates) is able to hold more than 10% of the total number of B Class Shares on issue.
