What share structure and preference rights are allowed under EIS eligibility rules?

EIS (and SEIS) eligibility has strict rules around share structure—any preferential shares will invalidate your relief entitlement.

**Key requirements:** - Avoid any preferential share classes entirely. Members emphasise this is non-negotiable: "anyone wanting that relief cannot have shares that are preferential in anyway." - Standard ordinary shares with proportional voting rights are required. Most sophisticated investors will not accept non-voting B shares anyway. - In practice, early-stage investors typically hold under 1% of equity, so proportional voting rights won't meaningfully dilute founder control.

**Bottom line:** If you're targeting EIS investment, keep your cap table simple with a single class of ordinary shares. Don't introduce preference rights, liquidation preferences, or non-voting structures—these are common in later funding rounds but incompatible with EIS relief.