Do shareholders have the right to information?

Do shareholders have the right to information?

The shareholders’ information rights, as defined in the common law and under the Business Organizations Code, is merely the right to inspect records of the corporation that already exist. The shareholder makes the request to inspect.

What are responsibilities of shareholders?

Your shareholder rights will be affected by the company structure, constitution and shareholder agreement. However, most shareholders have the right to attend shareholder meetings, vote on key issues, sell their shares, receive company reports, participate in corporate actions and share in the company’s profits.

When do shareholders not have right to information?

Consequently, shareholders do not have any recourse to reports under section 293 if the company is not a small proprietary company or if the shareholders has less than five per cent (5%) of the voting rights.

Why do shareholders need information about a company?

There are several reasons why a shareholder may require company information, primarily where a minority or oppressed shareholder loses control and is removed as a director. There may be reasonable suspicions that the company is financially unstable or the conduct is oppressive to its shareholders.

What are the rights of shareholders in the UK?

to inspect the register of members and the index of members’ names without charge to be given a copy of the register of shareholders within 10 days of a request (possibly subject to a charge) to inspect the register of directors’ service contracts without charge to receive a copy of the annual accounts to inspect the minutes of any general meeting

When do shareholders have the right to inspect the books?

Shareholders have the right to inspect the books and records of the company at any time. They have the right to inspect the minutes of board meetings, the financial statements of the company, shareholder register, annual reports of the company, and there should be a valid reason for inspecting the books.

Consequently, shareholders do not have any recourse to reports under section 293 if the company is not a small proprietary company or if the shareholders has less than five per cent (5%) of the voting rights.

What is the scope of shareholder rights to Corporation information?

Neither the common law nor the inspection statute limits the scope of corporate documents to which a shareholder has information rights, except to require that the request for inspection be made in good faith and for a “proper purpose.” In exercising inspection rights , a shareholder is required to state his purpose for the inspection in writing.

Why do shareholders want to see company records?

The following are generally recognized to be proper purposes in all circumstances: Probably the most common reason for a shareholder’s wanting to inspect corporate records is to determine the financial performance of the company and other information that bears ultimately on the value of the shareholder’s ownership interest.

Can a shareholder request financial information from a company?

The shareholder is, however, required to exercise good faith when requesting financial information. The shareholder must also have a proper purpose for the request. When a shareholder exercises his or her inspection rights, it’s a requirement that the reason for the request is presented in writing.