What do you mean by fair and equitable treatment of shareholders?
4: Equitable treatment of shareholders. The Company respects and ensures equitable and fair treatment of all shareholders. Whether they are major or minor, of big or small size holding, foreign or domestic, individual or institutional, the Company provides them with equal rights.
What are the rights of shareholders?
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.
What are the six principles of corporate governance?
The Principles cover six key areas of corporate governance – ensuring the basis for an effective corporate governance framework; the rights of shareholders; the equitable treatment of shareholders; the role of stakeholders in corporate governance; disclosure and transparency; and the responsibilities of the board (see …
What is the role of shareholders in corporate governance?
The shareholders of any company have a responsibility to ensure that the company is well run and well managed. They do this by monitoring the performance of the company and raising their objections or giving their approval to the actions of the management of the company.
What is disclosure and transparency in corporate governance?
The corporate governance framework should ensure that timely and accurate disclosure is made on all material matters regarding the corporation, including the financial situation, performance, ownership, and governance of the company.
What are the six shareholders rights?
However, most shareholders have the right to attend shareholder meetings, vote on key issues, sell their shares, receive company reports, participate in corporate actions and share in the company’s profits.
Which is not a right of shareholders?
Preferred shareholders are prioritised over Equity Shareholders when considering a company’s profit distribution. On the other hand, they do not hold a right to vote in matters pertaining to a company’s executive decisions.
Do shareholders control a company?
Stockholders can have considerable influence in a business because they own it. A shareholder who owns a majority stake clearly controls the company, but even small shareholders can wield influence, individually or collectively, through their shareholder rights.