In addition, shareholders are entitled to be provided, on demand and without charge, with a copy of the company’s last annual accounts and the last directors’ report and any auditor’s report on those accounts (together with any statement on the auditor’s report).
Shareholders have the right to know what the organization’s financial state is and whether the board and executives are managing money effectively for the best interests of the business. … Under the law, it should be a simple process to get corporate financial records as a shareholder.
Question: Can shareholders insist on seeing management accounts, bank statements or other detailed financial information? Answer: No. Their rights to see financial information are limited to the company’s annual filed accounts.
Can shareholders inspect books of accounts? The members of the company are not vested with any such right to inspect the books of account anywhere specifically in the Companies Act, 2013. However, the articles of the company can provide for such right of inspection for its shareholders and the timing for it.
What rights do shareholders have?
- 1 To attend general meetings and vote. …
- 2 To receive a share of the company’s profits. …
- 3 To receive certain documents from the company. …
- 4 To inspect statutory books and constitutional documents. …
- 5 To any final distribution on the winding up of the company.
Shareholders thereby play an important role in the functioning of a company. They have various rights which include the appointment of the company’s director, auditor etc., to voting rights and having a say when the company goes insolvent.
Common shareholders are granted six rights: voting power, ownership, the right to transfer ownership, dividends, the right to inspect corporate documents, and the right to sue for wrongful acts.
Financial statements are important to investors because they can provide enormous information about a company’s revenue, expenses, profitability, debt load, and the ability to meet its short-term and long-term financial obligations.
Members of a small proprietary company with at least 5% of the votes can direct the company to prepare and circulate financial reports to all shareholders. The request may specify that the financial report is to be audited.
Rights of all shareholders
All company shareholders have the right to: Inspect company information, including the register of members (s. 116 Companies Act 2006) and a record of resolutions and minutes (s. 358) without any charge.
This scenario would involve the directors calling a general meeting, at which the majority shareholders will pass an ordinary resolution approving the director’s removal.
A corporation is a type of business that sells shares of stock to investors and the stockholders become the owners of the company. Stockholders generally do not control day-to-day business decisions or management decisions, but they can influence business management indirectly through an executive board.