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    Presentation On Rights of Shareholders

    Uploaded by

    Hemasri Chinnu
    Shareholders have certain rights and privileges as owners of a company's stock. They have the right to vote on major decisions, inspect company books and records, transfer their ownership to others, and participate in company profits through dividends. Shareholders' liability is limited to the amount they invested and they have a right to their portion of assets in liquidation. They can also sue company directors for wrongful acts.

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    © All Rights Reserved
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    Presentation On Rights of Shareholders

    Uploaded by

    Hemasri Chinnu
    410 views12 pages
    Shareholders have certain rights and privileges as owners of a company's stock. They have the right to vote on major decisions, inspect company books and records, transfer their ownership to others, and participate in company profits through dividends. Shareholders' liability is limited to the amount they invested and they have a right to their portion of assets in liquidation. They can also sue company directors for wrongful acts.

    Original Title

    PRESENTATION ON RIGHTS OF SHAREHOLDERS

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    Shareholders have certain rights and privileges as owners of a company's stock. They have the right to vote on major decisions, inspect company books and records, transfer their ownership to others, and participate in company profits through dividends. Shareholders' liability is limited to the amount they invested and they have a right to their portion of assets in liquidation. They can also sue company directors for wrongful acts.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    410 views12 pages

    Presentation On Rights of Shareholders

    Uploaded by

    Hemasri Chinnu
    Shareholders have certain rights and privileges as owners of a company's stock. They have the right to vote on major decisions, inspect company books and records, transfer their ownership to others, and participate in company profits through dividends. Shareholders' liability is limited to the amount they invested and they have a right to their portion of assets in liquidation. They can also sue company directors for wrongful acts.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 12

    PRESENTATION ON

    RIGHTS AND PRIVILAGES OF


    SHARE HOLDERS

    PRESENTED BY-
    K.Hemasri -116
    SUBMITTED TO
    MBA DEPARTMENT OF VIIT(A)
    DEFINITION OF SHAREHOLDER
    • A shareholder, also referred to as a stockholder, is any
    person, company, or institution that owns at least
    one share of a company’s stock.
    • As equity owners, shareholders are subject to
    capital gains (or losses) and/or dividend payments
    as residual claimants on a firm's profits.

    • Shareholders also enjoy certain rights such as


    voting at shareholder meetings to approve things
    like board of directors members, dividend distributions,
    or mergers.
    RIGHTS OF SHAREHOLDERS
    Voting Rights
    • Common shareholders have the
    voting right in the annual general
    meeting of the company. These
    shareholders have the right to vote in
    an election of the director of the
    company, changing in the structure of
    the company, merger & acquisition.
    They can vote themselves or by a
    proxy vote if the shareholder is not
    able to attend personally.
    RIGHTS OF SHAREHOLDERS
    Right to Inspect Books & Records of
    Company
    • Shareholders have the right to inspect
    the books and records of the company
    at any time. They have the right to
    inspect the minutes of board meetings,
    the financial statements of the
    company, shareholder register, annual
    reports of the company, and there
    should be a valid reason for inspecting
    the books.
    RIGHTS OF SHAREHOLDERS
    Right to Transfer Ownership
    • Shareholders have a right to transfer their
    ownership by the trading of shares via a
    stock exchange. It provides liquidity to the
    shareholders. They can sell their shares at
    any time and get the cash in hand for
    another purpose. This is the major benefit of
    this investment, which is not available in
    other investments like property.
    RIGHTS OF SHAREHOLDERS
    Right to Participate in Profit
    • Shareholders have a right to receive
    dividends out of the profit of the
    company. Whenever the company
    earns profit, management has two
    options first is to retain the profit and
    use it for expansion of business, and
    second is to distribute amongst
    shareholders in the form of a dividend.
    The Board of Directors will decide
    what percentage of profit will be
    distributed as dividends.
    RIGHTS OF SHAREHOLDERS
    Liability Limited by Shares
    • Shareholders’ liability is limited to the
    extent of the amount invested in the
    company. In the case of liquidation or
    insolvency or any lawsuit, the
    shareholder is liable to the amount
    they have invested in the company by
    way of purchase of shares. They are
    not liable to make the payment out of
    their personal assets.
    RIGHTS OF SHAREHOLDERS
    Right to Claim During
    Liquidation
    • Shareholders have a right to take
    their money back in case of
    liquidation. A shareholder will
    get their capital after making
    payment to creditors, preference
    shareholders, and other investors
    who will get the payment before
    common shareholders.
    RIGHTS OF SHAREHOLDERS
    Right Issue
    • When a company wants to issue more
    shares of common shares, then existing
    shareholders have a preemptive right to buy
    these shares at a discounted price to
    maintain its ownership percentage in the
    company. After buying these shares at a
    discounted price, they can sell these shares
    into the market at market price and earn a
    profit.
    RIGHTS OF SHAREHOLDERS
    • Right to Sue for Wrongful Acts
    • The shareholder has a right to file suit for any
    wrongful act that happened within the
    company. A lawsuit can be file by the
    individual shareholder or by a group of
    shareholders or by the class of shareholders.
    Shareholders are filing a lawsuit against the
    executive officer/director of the company for
    any fraud or mismanagement or
    misrepresentation of financial statements or
    any other wrongful act done by the key person
    either by ignorance or by wilful.
    .

    THANK YOU

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