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Law Educator, Esq.
Law Educator, Esq., Attorney
Category: Business Law
Satisfied Customers: 111492
Experience:  All corporate law, including non-profits and charitable fraternal organizations.
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When a C corp that is set up with two classes of shares (voting/non-voting)

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When a C corp that is set up with two classes of shares (voting/non-voting) switches to an S corporation. Aren't the shares converted to one type with equal status?
Thank you for your question. I look forward to working with you to provide you the information you are seeking for educational purposes only.

An S-Corp can issue both voting and non-voting shares as well. Just the mere conversion of a C-corp to an S corp does not mandate the voting class of stock be merged, that is something that is at the discretion and decision of the owners of the company and the board of directors who govern or manage the shares.



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