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Explain about the rights and liabilities of a shareholders of a company?

Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 kruthika asked almost 2 years ago

Hi, Can you tell me about the rights and liabilities of a shareholders of a company?

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5 Answers
Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 acharya answered over 1 year ago

right to transfer ownership (often in restricted circumstances); receive company reports and announcements; entitlement to dividends and other distributions; entitlement to a final distribution on winding up; participation in corporate actions such as further issues of shares, share buybacks, mergers and de-mergers;

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Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 veeru answered over 1 year ago

voting on key issues (for example, election and dismissal of directors) and attendance at shareholder meetings; right to transfer ownership (often in restricted circumstances); receive company reports and announcements; entitlement to dividends and other distributions; entitlement to a final distribution on winding up; participation in corporate actions such as further issues of shares, share buybacks, mergers and de-mergers; and right to sue to make the company act lawfully. Further rights and powers of a shareholder can be found in company legislation, the company’s constitution (or the replaceable rules, to the extent applicable) and any shareholders’ agreement.

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Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 veeru answered over 1 year ago

As a general rule, shareholders enjoy the following rights: voting on key issues (for example, election and dismissal of directors) and attendance at shareholder meetings; right to transfer ownership (often in restricted circumstances); receive company reports and announcements; entitlement to dividends and other distributions; entitlement to a final distribution on winding up; participation in corporate actions such as further issues of shares, share buybacks, mergers and de-mergers;

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Picsjoin 2017224123730582 Archana answered almost 2 years ago

Hie Kruthika, **RIGHTS OF SHAREHOLDER** As a general rule, shareholders enjoy the following rights: - voting on key issues (for example, election and dismissal of directors) and attendance at shareholder meetings; - right to transfer ownership (often in restricted circumstances); - receive company reports and announcements; - entitlement to dividends and other distributions; - entitlement to a final distribution on winding up; - participation in corporate actions such as further issues of shares, share buybacks, mergers and de-mergers; and - right to sue to make the company act lawfully. Further rights and powers of a shareholder can be found in company legislation, the company’s constitution (or the replaceable rules, to the extent applicable) and any shareholders’ agreement. **LIABILITIES OF SHAREHOLDERS** Due to the separate legal existence of a company, shareholders are not responsible for the company’s obligations merely by reason of being a shareholder. The liability of a shareholder is usually limited to: - any unpaid amounts on the shares held by that shareholder; - any liability or obligations expressly provided for in the company’s constitution or shareholders’ agreement; and - liability for breach of directors’ duties if shareholders are considered to be directors (for example, if shareholders are provided with powers that would ordinarily be exercised by directors).

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Open uri20170510 32134 s5bvk0?1494421637 ARJUN PRATAP SINGH answered almost 2 years ago

Dear Friend, as far as your query is concerned that Explain about the rights and liabilities of a shareholders of a company? Let me informed the > the rights of a shareholder The usual situation is that in return for investing in a company a shareholder receives a bundle of rights in the company. These shareholder rights differ from company to company and within companies depending on the class of shares held. Most companies only have one class of share (ordinary shares) but Australian law allows for the creation of different classes of shares. The rights which attach to the different classes of shares is a matter for the company to determine and are usually set out in the company’s constitution. As a general rule, shareholders enjoy the following rights: voting on key issues (for example, election and dismissal of directors) and attendance at shareholder meetings; right to transfer ownership (often in restricted circumstances); receive company reports and announcements; entitlement to dividends and other distributions; entitlement to a final distribution on winding up; participation in corporate actions such as further issues of shares, share buybacks, mergers and de-mergers; and right to sue to make the company act lawfully. Further rights and powers of a shareholder can be found in company legislation, the company’s constitution (or the replaceable rules, to the extent applicable) and any shareholders’ agreement. > the liabilities of a shareholder Due to the separate legal existence of a company, shareholders are not responsible for the company’s obligations merely by reason of being a shareholder. The liability of a shareholder is usually limited to: any unpaid amounts on the shares held by that shareholder; any liability or obligations expressly provided for in the company’s constitution or shareholders’ agreement; and liability for breach of directors’ duties if shareholders are considered to be directors (for example, if shareholders are provided with powers that would ordinarily be exercised by directors). Hope answer was helpful to you Regards, Arjun Pratap Singh

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