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Principle of equal treatment

Principle of equal treatment

The principle of equal treatment means all shares carry equal rights unless the articles state otherwise.

What is the principle of equal treatment?

The principle of equal treatment (Swedish: likhetsprincipen) means that all shares carry equal rights in a limited company, unless the articles of association state otherwise, for example through different share classes. The general meeting and board may not give some shareholders an undue advantage at others' expense.

 

The principle of equal treatment and the share ledger

The principle protects minority shareholders in particular. For dividends and issues, the company must know which shares each owner holds, as shown in the share ledger.

Learn more about the digital share ledger
Henrik Kristensen, NVR
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Related terms

Share class

Share class refers to different types of shares in a company, e.g. A and B shares, with different rights.

Articles of association

The articles of association are the basic rulebook that governs how a limited company operates.

Minority shareholder

A minority shareholder is a shareholder who does not have a controlling interest in a limited company.

Shareholder

A shareholder is a person or company that owns one or more shares in a limited company.