Whether you're issuing standard common shares or structuring preferred shares for investors, Unlisted makes it easy to set up a new share class that reflects your legal and financial terms.
You can create a new share class from the share classes page by clicking the “Add share class” button located in the top right corner.
Let’s go step by step:
Choose a name and description
Start by entering a name (e.g., “Ordinary”, “Preferred”, "A" or "B") and a description explaining the purpose or characteristics of this share class.
Choose the type of shares
You must select whether this is a common or preferred share class.
Common Shares
Common shares are the standard type of equity most founders and employees receive.
If you choose common, you will configure:
Voting rights
Decide whether shareholders have voting rights or not
If yes, specify how many votes each share represents (e.g., 1 vote per share, 10 votes per share)
Dividend rights
Choose whether the share class receives dividends
If dividends are allowed, this means holders may receive distributions when declared by the company
Preferred Shares
Preferred shares are often used for investors and include additional rights and protections.
If you choose preferred, you will configure the same voting and dividend options as common shares, plus additional terms:
Seniority level
Defines the order in which this share class receives payouts in a liquidation event.
A higher seniority level means the class gets paid before more junior classes.
Example:
Seniority 1 → gets paid first
Seniority 2 → gets paid after seniority 1
Multiple
The liquidation preference multiple determines how much a preferred shareholder receives before common shareholders.
For example:
A 1x multiple → investor gets back exactly what they invested before others
A 2x multiple → investor gets double their investment before others
Participating
Indicates whether preferred shareholders continue receiving proceeds after their initial preference is paid.
Two cases:
Participating = Yes → Holder gets their liquidation preference and then also participates with common shareholders on the remaining amount
Participating = No (Non-participating) → Holder receives only the preference amount (e.g., 1x or 2x), then stops
Create the share class
After completing all fields, click “Create share class”.
Your new share class will immediately appear in the share classes page, where you can review it or edit it later using the pen icon.
Conclusion
Creating a share class in Unlisted gives you full control over defining shareholders' rights and priorities.
Whether you're issuing simple common shares or setting up detailed preferred share structures, the interface guides you through every step, from voting power and dividends to liquidation preferences and participation rights.
Once created, your share class becomes part of your company’s ownership structure and can be used for future issuances, option plans, and investor agreements.