Outline the Rights of Shareholders in a Business

Basic shareholder rights include:
? To secure methods of ownership registration;
? To convey or transfer shares;
? To obtain relevant information on the corporation on a timely and regular basis;
? To participate and vote in general shareholder meetings;
? To elect members of the Board; and
? To share in the residual profits of the company.
Shareholders have the right to participate in, and to be sufficiently informed on, decisions concerning fundamental corporate changes such as:
? Amendments to the statutes, or articles of incorporation or similar governing documents of the company;
? The authorization of additional shares; and
? Extra-ordinary transactions that in effect result in the sale of the company
Shareholders shall have the opportunity to participate effectively and vote in general shareholder meetings and shall be informed of the rules, including voting procedures that govern general shareholder meetings:
? Shareholders shall be furnished with sufficient and timely information concerning the date, location and agenda of general meetings, as well as full and timely information regarding the issues to be decided at the meetings.
? Opportunity shall be provided for shareholders to ask questions of the Board and to place items on the agenda at general meetings, subject to reasonable limitations.
? Shareholders shall be able to vote in person or in absentia, and equal effect shall be given to votes whether cast in person or in absentia.
? Shareholders shall be provided with adequate information on competencies required on the Board and given options to elect directors from amongst a range of qualified, competent, fit and proper persons.
Capital structures and arrangements that enable certain shareholders to obtain a degree of control disproportionate to their equity ownership shall be disclosed.
The Board shall endeavour to ensure that markets for corporate control are allowed to function in an efficient and transparent manner. In this regard, the Board shall always seek to ensure that:
? The rules and procedures governing the acquisition of corporate control in the capital market, and extraordinary transactions such as mergers and sales of substantial portions of corporate assets shall be clearly articulated and disclosed so that investors understand their rights and recourse.
? Transactions shall occur at transparent prices and under fair conditions that protect the rights of all shareholders according to their class.
? Anti-take-over devices shall not be used to shield management from accountability.
? Shareholders, including corporate investors, consider the costs and benefits of using their voting rights.
The Board of Directors shall ensure that there is equitable treatment of all shareholders. In particular the Board shall ensure that:
? All shareholders of the same class are treated equally.
? Equitable treatment of all shareholders, including minority and foreign shareholders. All shareholders shall have the opportunity to obtain effective redress for violation to their rights.
? Within any class, all shareholders should have the same voting rights. All investors should be
able to obtain information about voting rights affiliated with all classes of shares before they purchase them. Any changes in voting rights within or between classes of shares should be subject to shareholder vote.
? Votes shall be cast by custodians or nominees in a manner agreed upon with the beneficial owner of the shares.
? Processes and procedures for general shareholder meetings shall allow for equitable treatment of all shareholders.
? Company procedures do not make it unduly difficult or expensive to cast votes.
? Self-dealing and insider trading are prohibited.
? Members of the Board and managers disclose their material interests in transactions on matters affecting the corporation.
The Shareholders in turn have a duty and are well advised to exercise the supreme authority of the company in general meetings to hold the Board accountable for stewardship of the company.

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Titany answered the question on October 26, 2021 at 07:05