As a shareholder, you may be wondering about what rights and duties you have. The answer to this question can be based on various factors such as the class of your shares, the constitution of your company and if you are a shareholder or a public or private company.
As a shareholder, you must be aware of your rights and duties. Before you know more about commercial law perth, you must know that your rights can allow you to have a great impact on your company. This way, you can enjoy the benefits of being a shareholder and when you are aware of your duties, it can ensure that you perform your role and not be a part of troubles. Read the guide below to learn more about your duties as a shareholder.
To be a shareholder as per the law, you must be an individual or a legal entity that is the owner of part of a company via shares. The shares issued to shareholders as owners of the company represent a piece of the company. As ownership and control are separated, you do not have to participate in the daily management of the company.
The shareholder’s rights and duties that are outlined in the Corporations Act will depend on the following factors:
Owning preference shares indicate that you are given preferential treatment when compared to ordinary shareholders. For instance, you will be given priority if your company turns insolvent or is winding up in matters of getting repaid. You will also have the right to receive a fixed dividend payment.
Some of the rights of shareholders that you must be aware of are as follows:
As you are the owner of a company, you will have the right to inspect your company’s books and records to see how they are performing. The company will be able to provide you with this right by giving you audited financial statements, director’s reports or financial reports. As a shareholder, you will have the opportunity to inspect your company’s register for free.
You will have the right to sue the officers, executives and directors for all their wrongful actions. It is also essential to note that ASIC does not get involved with any disputes or problems of proprietary firms.
Your voting rights will be able to enable your participation in corporate decision-making. Some of the voting powers that you have as a shareholder are as follows:
As per commercial law, the AGM or Annual General Meeting is an annual meeting that is held for the company’s shareholders.
The shareholders of publicly listed companies have the right to trade their shares or interest on the ASX or Australian Stock Exchange. An essential part of this share is liquidity and this can let shareholders easily sell their shares or ownership interest on the ASX or Australia Stock Exchange. But one thing to keep in mind is you might be unable to sell your shares.
As a shareholder, you must know more about shareholder agreements. Shareholders are known to have the right to receive dividends, share buybacks, distributions and also share mergers and issues.
As a company is a separate legal entity, as a shareholder, you will not be responsible for the company’s legal obligations. This is why the assets of a company are not considered its shareholders. You will also not be entitled to anything other than an ownership interest in the company.
Before you choose a commercial lawyer, you must know that a shareholder is also not responsible for any of the company’s debt. But an exemption to this is that you are liable to pay the company any unpaid amount on your shares as a shareholder.
If you need proper counsel about a shareholder’s agreement being a shareholder, you can choose to hire the best lawyers in your area. Contact Commercial Lawyer Perth to access the best commercial lawyers who can help you know your rights as a shareholder and provide you with the best advice.
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Commercial lawyers Perth team did a great job for my settlement. Very professional and friendly lawyers in Perth . My queries were always answered and were just a call away. Highly recommended commercial lawyers in Perth , Western Australia
Commercial Lawyers Perth WA did a great job for my settlement. Very professional and friendly lawyers in Perth. My queries were always answered and were just a call away. Highly recommended commercial lawyers in Perth, Western Australia