Conversion of shares means shares are converted from one share class to another, for example preference shares to common shares, under terms in the articles of association or a shareholders' agreement.
Conversion changes the shares' rights, such as voting rights and the right to a dividend, and resembles reclassification of shares. The change must be recorded as a share ledger event in the share ledger.
Reclassification means shares change share class, for example from A to B shares.
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Share class refers to different types of shares in a company, e.g. A and B shares, with different rights.
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Preference shares are a share class that gives priority to dividends over other shares.
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Common shares are the most usual shares in a company and normally carry full voting rights.
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