Shareholders’ Rights

Shareholders’ Rights Since a shareholder is one of the owners of the company, he has a right to participate in the policy decisions of the company and the right to vote at such meetings. He has the right to appoint the auditor, and it is to the shareholder that the auditor presents the annual audit report. The shareholder is also entitled to receive his share of profits made by the company in the shape of dividends, and if the company chooses to capitalize part of the reserves by issuing bonus shares, the shareholder will receive such shares according to his entitlement.

All this is a theoretical, however. Ordinary shareholders, even with a few thousand shares, have no say against what the large shareholders. Such as promoters, financial institutions, government nominees and allies of the board of directors decide to do. In exceptional cases they can make a nuisance of themselves at company meetings and obtain small concessions.

You can leave a response, or trackback from your own site.

Leave a Reply

You must be logged in to post a comment.

Powered by WordPress