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Rights as a shareholder
Having invested in a business, an investor becomes a shareholder and is entitled to rights as a corporate owner. The shareholders control the corporation through an appointment of a board of directors to act on their behalf. The shareholders are entitled to the right to decide on significant changes of the companies. All shareholders must be treated equally and fairly.
Examples of shareholders' rights:
Fundamental Rights, including:
A Right for dividends which are shares of profits of the business allocated as compensations to the shareholders in line with the company's dividend policy.
A Right in receiving information of the company regularly and sufficiently for using in investment decision and exercise voting rights in shareholders' meetings.
Rights in managing a company, such as:
A Right in attending and voting in shareholders' meeting to express views or participate in designing directions of operations or any major changes of the corporations, or to discuss any significant issues which may impact rights of the shareholders. The shareholders can exercise their right through a general meeting which is required every year or through a special meeting to be convened as appropriate or as specified by laws.
A Right in proposing an additional agenda for shareholder meeting and withdrawal of a meeting resolution
A Right in selecting, removing directors; following up and inspecting their performance
A Right in Filing Complaints and Lawsuits
In case a shareholder is affected by misconduct of a director or a management executive, the shareholder is entitled to defend himself through litigation, for examples:
Filing a lawsuit for damages against directors and management executives of a company, in case that directors or the management of the company disclose false essential information or conceal any facts of which the shareholders should be notified.
Taking legal proceedings to claim for damages or the lost benefits to a company, when directors or the management executives of the company perform the duties with recklessness or dishonesty causing damages to the company; or when directors or the management unlawfully acquired benefits via practices of cronyism.