Question

Note 13 to the January 25, 2014, financial statements of Le Château Inc. is shown in Exhibit 11-9. All dollar amounts are in thousands.
Required:
a. Describe the differences between the Class A subordinate voting shares and Class B voting shares with respect to the following:
i. Their ability to influence the selection of management and to influence company decision making
ii. The amount and priority of expected dividends.
b. If you owned 100,000 Class A subordinate voting shares at January 25, 2014, what proportion of total votes would you control? If you owned 100,000 Class B voting shares, what proportion of total votes would you control?
c. Why would investors choose to purchase the Class A rather than the Class B shares? Or vice versa?
d. Why might Class A shareholders choose to convert their shareholdings into Class B shares, as described in Principal features part [e]?


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  • CreatedJune 12, 2015
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