What are rights of a shareholder in a pvt. ltd. company? If shareholder is not invited in any of the meeting, how can he raise his voice and in which forum. What is role of RoC in case shareholders voice is not heard?
Sanjay Sharma (CMD) (40 Points)
05 March 2010What are rights of a shareholder in a pvt. ltd. company? If shareholder is not invited in any of the meeting, how can he raise his voice and in which forum. What is role of RoC in case shareholders voice is not heard?
Ankur Garg
(Company Secretary and Compliance Officer)
(114773 Points)
Replied 05 March 2010
RIGHTS OF SHAREHOLDER
Only a person whose name is on register can exercise privileges of a member. Some of the rights of a shareholder are:
(i) to elect directors and thus to participate in the management through them;
(ii) to vote on resolution at meetings of the company;
(iii) to enjoy the profits of the company in the shape of dividends;
(iv) to apply to the Court/Tribunal for relief in the case of oppression;
(v) to apply to the Court/Tribunal for relief in the case of mismanagement;
(vi) to apply to the Court/Tribunal for winding up of the company;
(vii) to share in the surplus on winding up;
(viii) the right to vote at all meetings;
(ix) the right to requisition an extraordinary general meeting of the company or to be a joint requisitionist;
(x) the right to receive notice of a general meeting [section 172];
(xi) the right to appoint proxy and inspect proxy registers [section 176];
(xii) in the case of a body corporate which is a member, the right to appoint a representative to attend a general meeting on its behalf [section 187];
Ankur Garg
(Company Secretary and Compliance Officer)
(114773 Points)
Replied 05 March 2010
In case of oppression and mismanagement in the company the shareholder can file application to Court/Tribunal u/s 397 and 398 as mentioned in the right no. (iv) and (v) above.
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