Which right gives a shareholder the option to convert their shares into different classes of shares?

The right that allows a shareholder the option to convert their shares into different classes of shares is known as the right of conversion. This right is specifically designed to provide flexibility to shareholders, enabling them to change their investment structure or adapt to different market conditions or company circumstances.

When shares are issued with a conversion feature, shareholders can typically convert their original shares into another class, often with different rights or restrictions. This process can be advantageous, offering potential benefits such as increased voting power, higher dividends, or other favorable terms that may be associated with the newly converted shares.

Understanding this right is crucial for shareholders who wish to maximize their investment and for legal professionals advising on shareholder agreements or corporate governance. The focus on the right of conversion highlights its importance in the landscape of corporate finance and shareholder rights.