What are the rights of shareholders?

Shareholders, also known as stockholders, are the owners of a company. They have certain rights related to the ownership of the company that they are entitled to. In Texas, shareholders have a right to inspect corporate records, such as the financial statements, minutes of meetings, and other documents that are related to the company. They also have the right to vote on matters related to the company, such as the election of the Board of Directors and other significant decisions. Shareholders have a right to buy stock in the company, and when the company pays out dividends or profits, shareholders have the right to receive their share. They also have the right to receive a portion of the company’s assets in the event of a bankruptcy, liquidation, or merger. Shareholders also have the right to bring legal action against the company and its executives if they feel their rights have been violated. This is known as a derivative action, and it allows shareholders to protect their interests in the company. Finally, shareholders have a right to be informed about the company’s progress and upcoming decisions. They should receive notification of meetings and be given the opportunity to attend and participate in the decision-making process of the company.

Related FAQs

What are the legal risks associated with starting a business?
What is the difference between criminal and civil law?
What are the legal requirements for directors?
What is the procedure for issuing stock?
What is a non-disclosure agreement?
What are the requirements for issuing corporate bonds?
What is the difference between tax avoidance and tax evasion?
What is the process for forming a corporation?
What is the purpose of anti-trust law?
What are the different types of business entities?

What are the rights of shareholders?

Related FAQs

Related Blog Posts