What are your rights as a shareholder?

When you become a shareholder of a company, you gain shareholder rights. It is important to know about them.

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1

To get physical copies of the audited financial statements, annual reports and annual general meeting notices and access memorandum of association or articles of association of the company.

These documents are important to understand:

  • What is the company doing?
  • Is the business running well?
  • What are the actions taken by the top management?
  • Are there any changes in the top management?

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2

To demand a poll or vote in any shareholder meeting or annual general meeting.

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3

To appeal against any refusal to transfer shares.

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4

To participate in the appointment or removal of the director of the company.

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5

Receive dividends of the company when announced while you have their shares.

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6

Participate in the appointment of the statutory auditor of the company.

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7

To get preference over outside potential investors when the company wants to issue further shares in the market.

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8

To ask questions, place items on the meeting agenda, and suggest solutions subject to reasonable limitations to the board of directors during annual general meetings.

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9

To ask questions, place items on the meeting agenda, and suggest solutions subject to reasonable limitations to the board of directors during annual general meetings.

You might already be feeling empowered, isn’t it?

Yes, by buying shares in a company, you actually become a part-owner.

Points to remember

Points to remember

Here’s a quick recap of everything you have learnt so far about equities.

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    When you buy shares of a company, you become a ‘part owner’ of the company

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    The share value can be higher or lower than the value at which they purchased in the short run

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    In the long run, the value can rise above the value at which they had purchased if it is a good business

Click to proceed to know about why does price of equities change

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