The following
are the rights of a Shareholder :
(a) Statutory Rights: this are the rights which are conferred on
the Shareholders by the Companies Act, 1956. This rights cannot be taken away
or modified by the memorandum or article of association. Some of the statutory
rights are as under:
1.
A Shareholder has a right of priority to have
shares offered incase of increase of capital.
2.
Right of receive notices of meeting, attend and
vote at meeting.
3.
Right to transfer share
4.
Right to receive share certificate
5.
Right to receive annual accounts of the company.
6.
Right to inspect the register of members,
debenture holders and copies of annual returns.
7.
Right to apply to the central government for
calling and annual general meeting if the board of directors fails to call such
meeting.
8.
Right to apply to the court for calling an extra
ordinary general meeting.
9.
Right to participate in appointments of
directors and auditors in the annual general meeting.
10.
Right to petition to the central government for
ordering an investigation into the affairs of the company.
11.
Right to petition to the High Court for relief
in case of Operation and mismanagement
12.
Right to petition to the High Court for winding
up of company.
(b) Documentary Rights: this are the rights given to the Shareholders
by the memorandum or articles of associations.
(c) Proprietary Rights: Proprietary rights include the following
rights
1.
Right to be registered as a share holder
2.
Right to be registered as a member in the
register of member, subject only to valid and authorize transfer of shares.
3.
Privilege of immunity from personal liability of
companies debt.
4.
Right to participate in dividend distribution if
ordered in the discretion of the directors
5.
Right to participate in the distribution of
assets in case of liquidation of the company
(d) Remedial Rights: Remedial rights includes the following
rights.
1.
Right to information and inspection of companies
record.
2.
right to bring representative suits on companies
cause of action to prevent or remedy mismanagement or unauthorized act and to
compel the company to enforce its right, and
3.
common law, equitable and statutory remedies for
infringement of individual rights.
Liabilities of Shareholders
Liabilities
of the Shareholder depend upon the kind of company.
1.
In case of a limited company, the liability of
each Shareholder is linked to the face value of the share he has agreed upon.
2.
In case of a company limited by guarantee, the
liability of each Shareholder is to the extent of the guarantee agreed upon.
3.
In case of a company with unlimited liability
the liability of each Shareholder is unlimited.
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