Rights of Sharesholder

Shareholder means a person having ownership in the share of a company. It can be an individual or entity, who owns the shares of a corporation. They are considered to be the real owners of a company. Shareholders are the source of capital required to mobilize via capital market.

• Right to participate in the public issue of securities.
• Right to receive the shares on allotment.
• Right to purchase share within the stipulated time and to be refunded the money back within the given time in case of non-allotment.
• Right to receive a share certificate in the prescribed format in respect of each share subscribed by him/her, within two months after the allotment of shares.
• Receive dividends in due time once approved in general meetings.
• Right to receive corporate benefits like right, bonus, etc. once approved.
• Right to receive a notice specifying the place, date and agenda of meeting to every shareholder at the address supplied by that shareholder to the company, in advance of at least twenty one days to hold the annual general meeting, and in advance of at least fifteen days to hold the extra- ordinary general meeting .
• Right to participate and vote in Annual General Meeting (AGM).
• Right to appoint of a proxy to vote in his/her behalf, if a shareholder who is entitled to vote is not able to personally attend the AGM.
• Right to put a matter for discussion and decision if shareholder/s is representing at least 25 percent of the total number of votes by submitting an application to the directors prior the issue of notice for any matter to be presented at the AGM for discussion and decision.
• Right to inspect and obtain copies of the annual financial statement, directors’ report and auditors’ report.
• Right to call an Extra-Ordinary General Meeting of the company by making an application by the shareholder/s holding at least ten percent shares of the paid-up capital of a company or at least twenty five percent shareholders of the total number of shareholders.
• Right to receive duplicate copy of the memorandum of association, prospectus, annual accounts and audit or directors’ report or any document submitted by the company to the Office the concerned company shall provide a duplicate copy of such document by collecting the fees prescribed in the articles of association.