Clearly Canadian Beverage Corporation has been given the go-ahead to create a new class of shares.

At a special general meeting earlier this month, the company's shareholders voted in favour of the creation of a new class of preferred shares of unlimited number. The new shares will be called Variable Multiple Voting Shares. The common shares in Clearly Canadian will henceforth be known as limited voting shares.

"The company's purpose in creating the new preferred shares is to provide an incentive to the company's majority shareholder, BG Capital Group, to now convert its Class B preferred shares of the company into 8m common shares, which BG has agreed to do," the company said yesterday (27 March). "This is substantially fewer than the number of common shares BG would have been entitled to receive upon conversion of its Class B preferred shares at a later date."

Clearly Canadian will subsequently issue BG the equivalent amount of new preferred shares which will, at the conversion date, give BG 50% of the vote.