The company is authorized to issue an unlimited number of Class Apreferred shares and an unlimited number of ClassAApreferred  shares, issuable in series. No Class AA preferred shares have been issued. The Class A preferred shares have preference over the Class AA preferred shares, which in turn are entitled to preference over  the Class A and Class B common shares on the declaration of dividends and other distributions to shareholders. All series of  the outstanding preferred shares have a par value of C$25 per share. On March 13, 2014, the company issued 8.0 million Series 38 preferred shares with an initial dividend rate of 4.4% for total  gross proceeds of C$200 million. Non-controlling interests represent the common and preferred equity in consolidated entities that are owned by other shareholders. Further information on non-controlling interest is provided in Note 4, Subsidiaries. The company’s common equity is comprised of the following: The company is authorized to issue an unlimited number of Class A shares and 85,120 Class B shares, together referred to as  common shares. The company’s common shares have no stated par value. The holders of Class A shares and Class B shares  rank on parity with each other with respect to the payment of dividends and the return of capital on the liquidation, dissolution  or winding up of the company or any other distribution of the assets of the company among its shareholders for the purpose  of winding up its affairs. Holders of the Class A shares are entitled to elect one-half of the Board of Directors of the company  and holders of the Class B shares are entitled to elect the other one-half of the Board of Directors. With respect to the Class A  and Class B shares, there are no dilutive factors, material or otherwise, that would result in different diluted earnings per share  between the classes. This relationship holds true irrespective of the number of dilutive instruments issued in either one of the  respective classes of common stock, as both classes of shares participate equally, on a pro rata basis, in the dividends, earnings  and net assets of the company, whether taken before or after dilutive instruments, regardless of which class of shares are diluted.  The holders of the company’s common shares received cash dividends of $0.64 per share during 2013 (2012 – $0.55 per share).  In addition, the company distributed a 7.6% interest in BPY to the holders of its common shares on April 15, 2013 valued at  $1.47 per common share. The number of issued and outstanding common shares and unexercised options at December 31, 2013 and 2012 are as follows: 1.  Net of 9,550,000 (2012 – 5,450,000) Class A shares held by the company to satisfy long-term compensation agreements 2.  Includes management share option plan and escrowed stock plan 2013 ANNUAL REPORT 133 Dec. 31, 2013 Dec. 31, 2012 Class A shares 1 615,386,476 619,514,229 Class B shares  85,120 85,120 Shares outstanding 1 615,471,596 619,599,349 Unexercised options 2 35,603,974 38,402,078 Total diluted shares  651,075,570 658,001,427 (MILLIONS) Dec. 31, 2013 Dec. 31, 2012 Common shares  $ 2,899 $ 2,855 Contributed surplus  159 149 Retained earnings  7,159 6,813 Ownership changes  2,354 2,088 Accumulated other comprehensive income  5,210 6,245 Common equity  $ 17,781 $ 18,150 (MILLIONS) Dec. 31, 2013 Dec. 31, 2012 Common equity  $ 23,828 $ 20,933 Preferred equity  2,819 2,354 Total  $ 26,647 $ 23,287 b)  Non-controlling Interests c)  Common Equity