Capital stock

12 Months Ended

Dec. 31, 2011

Capital stock [Abstract]

Capital stock

17. Capital stock

Common shares

Nortel is authorized to issue an unlimited number of NNC common shares without nominal or par value. There was no activity involving common shares in the years ended December 31, 2011 and 2010. Nortel had 498 million NNC common shares valued at $35,604 outstanding and included in shareholders' equity as at the beginning and end of the years ended December 31, 2011 and 2010.

Preferred shares

Nortel is authorized to issue an unlimited number of class A preferred shares, which rank senior to the class B preferred shares and the NNC common shares upon a distribution of capital or assets, and an unlimited number of class B preferred shares, which rank junior to the class A preferred shares and senior to the NNC common shares upon a distribution of capital or assets, in each case without nominal or par value. Each of the class A and class B preferred shares is issuable in one or more series, each series having such rights, restrictions and provisions as determined by Nortel's board of directors at the time of issue. None of the class A or class B preferred shares of Nortel have been issued.