Shareholders

Shareholders . A shareholder is a person who owns one or more shares in a company. His responsibility and decision-making power depend on the percentage of capital that he contributes to it (to more shares, more votes).

The existence of the action is indispensable when speaking of the Public Limited Company since it is not possible to speak of the Public Limited Company without speaking of the action. The share is the part in which the capital is divided in the Corporation. The partner will receive shares after an effective contribution of a patrimonial nature to the Company.

Summary

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  • 1 Features
  • 2 Definition of management indicator
  • 3 Economic indicator
  • 4 Rights of a shareholder
    • 1 Right to dividend
    • 2 Preferential subscription right
    • 3 Right to the settlement fee
    • 4 Right to attend and vote at General Shareholders’ Meetings
    • 5 Right to information
    • 6 Right to transfer the shares
    • 7 Right to challenge social agreements
    • 8 Right of separation
    • 9 Right to call the Meeting
    • 10 Right to proportional representation on the Board
  • 5 Main types of shareholders
  • 6 Source

features

  • It should be noted that a shareholder can be both a natural person and a legal person. This means that a group of individuals can group together to buy a stake in a company.
  • In the case of corporations, not all shareholders have management power. A companyanonymous can have thousands of shareholders, whose interest is limited to obtaining financial compensation for changes in investment. These shareholders, for example, can buy shares at $ 1 a share and expect the company to pay them a dividend on the amount.
  • By purchasing shares in a firm, a shareholder can acquire economic or political rights. Among the economic rights, the right to receive a dividend according to the participation appears, to receive a percentage of the value of the companyin the event that it is liquidated and to sell the shares freely in the market .
  • Political or management rights are linked to votes and access to the information necessary to learn about business management.

Management indicator definition

An indicator is something that serves to indicate or that is to say, that shows something with signs or indications. The indicator can be physical as a road sign or abstract as a statistic.

Management, on the other hand, is the action and effect of managing or administering. These procedures seek to specify steps to achieve a goal or achieve something. It is known as a management indicator that data that reflects the consequences of actions taken in the past in the framework of an organization. The idea is that these indicators lay the foundations for actions to be taken in the present and in the future.

It is important that the management indicators reflect truthful and reliable data, since the analysis of the situation, otherwise, will not be correct. On the other hand, if the indicators are ambiguous, the interpretation will be complicated.

What a management indicator allows is to determine if a project or organization is being successful or if it is meeting its objectives. The leader of the organization is the one who usually establishes the management indicators, which are used frequently to evaluate performance and results.

Experts distinguish between different types of management indicators, which study competitive advantages, resource utilization, quality of service, and financial performance, for example.

The most used indicators are those that are based on economic data and that allow us to know the evaluation of sales and costs. All companies claim that the sales indicator shows sustained increases, while the cost indicator should fall or at least stay under control to maximize profits.

Economic indicator

An economic indicator is an index that allows to represent an economic reality in a quantitative and direct way. It is usually a statistic that involves a measurement of a variable over a certain period. The interpretation of the indicator allows knowing the situation of the economy and making projections. The Consumer Price Index (CPI) is one of the most used indicators. It allows you to compare the prices of a group of products that are purchased by consumers on a regular basis and discover the variations of each one.

Other very frequent indicators are the Gross Domestic Product (GDP) or Gross Domestic Product (GDP), which reflects the production of final goods and services of a country in a temporary period. Per capita income, on the other hand, is the result of the division between GDP and the number of inhabitants of a country. This indicator, of course, ignores income inequalities: in a hypothetical country with two inhabitants, if one earns 10,000 pesos per month and the other only 2,000, the per capita income will be 6,000 pesos per month, much higher than what he earns the poorest.

Rights of a shareholder

Right to dividend

The dividend is the part of the profit that the company decides to distribute among its owners and constitutes the ordinary return of the value. The distribution of dividends is a decision of the General Meeting provided that a series of legal requirements are met, so it should not be forgotten that a Company can have benefits and the Board decides not to distribute them. In this assumption and theoretically, it should be reflected in its market price, the shareholder receiving this return through its sale capital gains.

Preferential subscription right

When a company decides to increase its capital with the issuance of new shares or convertible bonds, old shareholders have preference in subscription. However, the shareholder can exercise them by subscribing the new shares or convertible bonds, or sell these rights in the market. In the case of capital increases released with a charge to reserves, it is called a free allotment right, since the shares are assigned without express instruction or any payment by the shareholder.

Right to the settlement fee

In the event that the company should dissolve and be liquidated, the shareholder is entitled to receive its proportional part of the proceeds of the liquidation.

Right to attend and vote at General Shareholders’ Meetings

To exercise this right, the shareholder will always have to possess the minimum number of shares established and provided for in the bylaws, or group with other shareholders to achieve this minimum. It is very important to attend the Boards or to be duly represented in them. The agreements are made by majority vote, although there are some cases in which qualified majorities are required.

Right to information

Shareholders have the right to obtain information on the situation of the company. As of the call of the Meeting, any shareholder may immediately and free of charge obtain the annual accounts and the management report from the company, as well as any other document that must be submitted for approval. Shareholders may request clarifications or reports, in writing, prior to the holding of the General Meeting, and likewise during the holding of the General Meeting, shareholders may verbally request the clarifications or reports they deem necessary on the points included in the Order of the Day.

Right of transfer of shares

The shares of listed companies can be transferred without any restriction, while in unlisted companies, in addition to the possible lack of liquidity, there is the possibility that the transfer is subject to limitations by provision of the statutes or by legal regulations .

Right to challenge social agreements

The shareholder, individually or in groups with others, may exercise a legal action to challenge the resolutions of the Meeting that are contrary to the law, or to the bylaws, or that harm the interests of one, several shareholders or third parties. society.

Right of separation

The shareholder’s right of separation, which consists of receiving the amount of his shares, is limited to certain cases: substitution of the corporate purpose not merely modification, change of address abroad, or transformation into a partnership or limited partnership .

Right of convocation of the Board

The shareholder or shareholders representing 5% of the capital may contact the administrators requesting the call of a General Meeting, including the Agenda that they propose. If the administrators do not call the Meeting, the Judge would order the celebration of the same.

Right to proportional representation on the Board

The shareholders, one or several grouped together, may choose, in proportion to their participation in the share capital, the number of directors that corresponds, unless there is some restriction in the statutes regarding the so-called shields.

Main types of shareholders

Reference shareholders: those who have such a number of shares that allow them to intervene or influence the management of the company (eg, appoint members of the Board of Directors).

Minority shareholders: those who, due to the low level of shares they own, are unable to influence the company, unless several minority shareholders associate with each other until they jointly represent a relevant reference share capital figure.

A preferred share. They form part of the company’s capital stock, but do not grant their holders political rights. The main distinguishing feature with ordinary shares is that they grant their acquirers a preferential right in the distribution of profits.

 

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