Shareholders

Question 1

If asked to explain the role of shareholders in a company, how would you answer the question?

Answer 1

Introduction:
[Define the shareholder, and how One can become a shareholder]

Body:
[Talk on the Rights and responsibility of shareholders, share contribution]

conclusion:

Question 2

What are shareholders and how can one become one?

Answer 2

The assembly of shareholders is the top organ of a limited liability company, they are a group of people who meet together in ordinary and extraordinary meetings to make decisions about the company, appoint and dismiss directors and other staff, and handle the profits or losses of the company. One becomes a shareholder by purchasing shares in said company.

Question 3

What are the rights of shareholders?

Answer 3

Shareholders’ rights in a company can be divided into two categories, pecuniary rights that involve:
-> Sharing in the profits of the company, when it is shared
-> Sharing in the assets of the company upon the company’s dissolution, if all the company’s debts have already been settled

and non-pecuniary rights that involve:
-> The right to attend ordinary and extraordinary meetings
-> The right to take part in company decisions
-> The right to vote on major company matters and their voting power depends on the number of shares they own

Question 4

What are the obligations of shareholders?

Answer 4

Shareholders have certain obligations which are:
-> Contributing to the company’s capital
-> Contribution to the smooth running and function of the company
-> sharing in the company’s losses
-> Attend company meeting or assigning a proxy to do so on their behalf

Question 5

What are the type of contributions shareholders can contribute to the company in the form of shares?

Answer 5

One of the Obligations of shareholders is that they must contribute to the capital of the company in the form of shares, OHADA specifies 3 types of possible contributions:
-> Contributions in cash, kind and services