Which type of shareholder has the least claim on a company's assets during liquidation?

Ordinary shareholders have the least claim on a company's assets during liquidation because they are last in line to receive any distributed assets after all other obligations have been settled. In the hierarchy of claims, secured creditors and debenture holders, who are creditors of the company, have a priority claim on the company's assets. Preference shareholders also have a higher claim than ordinary shareholders, as they are entitled to receive dividends and assets upon liquidation before ordinary shareholders.

When a company goes into liquidation, assets are first used to pay off secured creditors, followed by unsecured creditors like debenture holders, and then preference shareholders, who have specified preferential rights. Only after these claims are fully satisfied do ordinary shareholders receive any remaining assets. Therefore, ordinary shareholders assume the greatest risk and have the least protection in cases of liquidation, highlighting their subordinate position in the capital structure of the company.