What are subordinate and non-voting shares and why the heck to companies issue them?
Subordinate Voting Shares carry the right to vote, like other issues of common stock, but they hold a lesser voting weight than other issues. i.e. certain shares have more voting “power” than subordinate shares. Non-voting shares generally, as the name implies, do not have the right to vote on any corporate governance. Restricted voting shares have a right to vote, but this right is subject to some restriction on the number or percentage of shares that may be voted by the shareholder.
Generally all three of these types of shares are an effort for a party or a small group of parties to maintain control over the company, but still give them the power to raise capital. It’s a way to use Bay Street to raise equity, but without losing significant (or any) voting control over the governance of the company.