What are the Rights of Shareholders

Question

What are the Rights of Shareholders?

Answer 1

Shareholder rights derive from two main sources: the articles of incorporation and securities legislation. At least one class of shares must have three basic rights:

1) To vote at any meeting of shareholders;

2) To receive any dividend declared;

3) To receive the remaining property, after payment of debts, on dissolution of the corporation.

Shareholders also have a right to access certain information, including articles, by-laws, minutes of shareholder meetings and shareholder resolutions, the share register, and financial statements. In small corporations, shareholders may have a right of first refusal that requires existing shareholders to be offered a chance to buy shares from another shareholder before those shares are offered to non-shareholders.