2020-10-05 Meeting notes
- Elisa Kendall
Date
Attendees
Agenda
1) Use Case reminder
2) Where we are on our road map.
3) Open Action Items
4) JIRA Issues Review - https://jira.edmcouncil.org/projects/SEC/issues/SEC-7?filter=allopenissues
5) Todays content discussion.
SMIF OWL-UML
SKOS
RDF/S
6) For next week.
Proceedings:
Discussed some of the recently added issues currently open in JIRA to determine what to tackle next. One of the issues is related to share class. Google, for example issues shares publicly as class A or class C, and also for insiders, class B. A and C are distinguished by voting rights - class C shares are non-voting. B is also distinguished by voting rights - each share has the equivalent of 10 votes per share, among other differences. Some definitions that are relevant:
A class of shares is a type of listed company stock that is differentiated by the level of voting rights shareholders receive. For example, a listed company might have two share classes, or classes of stock, designated as Class A and Class B. Owners of companies that have been privately owned and go public often create class A and B share structures with different voting rights in order to maintain control and/or to make the company a more difficult target for a takeover. Two of the primary types of stock are common shares, representing the majority of shares available across the market, and preferred stock, which typically guarantee a fixed dividend but do not have voting rights.
One common class of stock is advisory shares. Also known as advisor shares, this type of stock is given to business advisors in exchange for their insight and expertise. Often, the advisors who receive this type of stock option reward are company founders or high-level executives. Advisor shares typically vest monthly over a 1-2 year period on a schedule with no cliff and 100% single-trigger acceleration.
Class of shares can also refer to the different share classes that exist for load mutual funds. There are three share classes (Class A, Class B and Class C) which carry different sales charges, 12b-1 fees and operating expense structures. Whether referring to different share classes of a company's stock or the multiple share classes offered by advisor-sold mutual funds, both cases refer to different rights and costs owned by holders of each share class.
Preferred shares are of a different type rather than share class. Different classes of shares have distinct identifiers, including a different ticker symbol. Our Google (Alphabet) class A and class C shares in our examples show this - their FIGIs are different, and it is possible that they have a different ISIN / CUSIP in the U.S.
The new property was added under SEC-139, and we also added it to the Alphabet shares in examples to show users how to add the share class, as needed.