Shareholders have rights arising from the Companies Act, the company’s Memorandum and Articles, the class of shares they hold and any valid unanimous shareholder agreement.
Common rights
Depending on the company and share class, rights can include:
- attending and voting at general meetings;
- receiving notices and prescribed company information;
- receiving dividends when lawfully declared;
- transferring shares subject to legal and contractual restrictions;
- inspecting certain company records;
- requesting information about company affairs;
- challenging conduct prejudicial to shareholder interests;
- seeking court orders against unauthorized acts;
- bringing a derivative action on behalf of the company in qualifying circumstances.
Section 139 allows a shareholder to seek court relief where company conduct is or may be prejudicial to the shareholder’s rights and interests.
Rights depend on context
Not every shareholder has identical rights. Preference shares, ordinary shares, private-company restrictions and shareholder agreements can affect voting, transfer and economic rights.