QS Study

The right of the Shareholders:

Shareholders are an individual, group, or organization that owns one or more shares in a company and in the whole name the share certificate is issued.

Shareholders of the company enjoy following rights individually and collectively according to the Companies Act:

(a) Individual Rights of Shareholders: Shareholders enjoy following rights individually:

  • Right to get a dividend from profit.
  • Right to be a listed member of the company.
  • Right to get share certificate at right time.
  • Right to transfer to share.
  • Right to provide the vote.
  • Right to get Annual Report, Prospectus, Memorandum of Association etc.
  • Right to take legal action against the company for any indiscipline.
  • Right to get notice of AGM before 14 days of the program.
  • Right to get legal proportion at the dissolution of the Companies Act.
  • Right to take assets of the company.
  • Right to inspect the records and books of the corporation.
  • Right to go to court agates the company for wrongful acts by the directors and officers of the company.

(b) Collective Rights of Shareholders: shareholders enjoy following rights collectively-

  • Right to elect the board of directors of the company.
  • Right to select the auditor for the company.
  • Right to select the rules and regulation of the shareholders.
  • Right to approve a legal activity that is good for the company.
  • Right to change the part of MOA or any other constitution for the company.
  • Right to call GM (General Meeting) for some special purpose.
  • Right to re-examine the annual report of the company.
  • Right to approve or disapprove the activities of the directors.
  • Right to convert the stock into the share or share into stock.
  • Right to dissolute the company.
  • Right to announce the dividend.
  • Right to elect the General Manager for the company.
  • Right to give resignation to any director.
  • Right to select the number of shares to be issued etc.

These are the individual and collective rights of shareholders that they get from companies. If any shareholder is derived from these rights then he or she can sue in the court.

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