Shareholder's Rights Law
Some decisions include the right to elect a board of directors, review executive compensation policies and provide opinions on the environmental, financial and social issues of the companies in which they have shares. In order to comply with Corporate Legislation, the elected Board of the Directors must hold at least one annual meeting with shareowners to keep them informed of all issues regarding the corporation. Visit Us at Google+ Copyright HG.org
Shareholder's Rights Law - US
- ABA - Business Law Section
The Mission of the Section is to serve the public, the profession and the Section by furthering the development and improvement of business law, educating Section members in business law and related professional responsibilities, and helping Section members to serve their clients competently, efficiently and professionally.
- Corporate and Financial Institution Compensation Fairness Act of 2009
To amend the Securities Exchange Act of 1934 to provide shareholders with an advisory vote on executive compensation and to prevent perverse incentives in the compensation practices of financial institutions.
- Legal Duties of the Board of Directors
As a general rule, few state laws or court decisions specifically address the fiduciary duties owed by a mutual board. Nevertheless, it should be assumed that mutual boards owe duties to their company and members that are the same as the duties owed by directors of stock corporations to their companies and shareholders. In most states, these duties consist of the duty of care and the duty of loyalty.
- Proxy Democracy - Stockholder Rights
A company's stockholders have the legal right to make important decisions at the companies they own: they elect directors, review aspects of executive compensation, and weigh in on shareholder proposals addressing a variety of environmental, social, and governance issues. Shareholders can use their voting power to create economic and social value at the companies they own.
- Reference for Business - Shareholders - Overview
Shareholders or stockholders own parts or shares of companies. In large corporations, shareholders are people and institutions that simply invest money for future dividends and for the potential increased value of their shares, whereas in small companies they may be the people who established the business or who have a more personal stake in it. When investors buy shares of companies, they receive certificates that say how many shares they own. Owning shares of a company often entitles an investor to a part of the company's profits, which is issued as a dividend. In addition, shareholders are typically offered a fixed payout per share if the company is bought out.
- Shareholder - Definition
A shareholder is defined as the owner of one or more shares of stock in a corporation, commonly also called a "stockholder." The benefits of being a shareholder include receiving dividends for each share as determined by the Board of Directors, the right to vote (except for certain preferred shares) for members of the board of directors, to bring a derivative action (lawsuit) if the corporation is poorly managed, and to participate in the division of value of assets upon dissolution and winding up of the corporation, if there is any value. A shareholder should have his/her name registered with the corporation, but may hold a stock certificate which has been signed over to him/her. Before registration the new shareholder may not be able to cast votes represented by the shares.
- Shareholder Bill of Rights Act of 2009
A bill to provide shareholders with enhanced authority over the nomination, election, and compensation of public company executives.
- Shareholder Meetings - All Business
Every state has routine requirements for shareholder meetings. Generally, shareholders are required to have (at least) an annual meeting. The main purpose of this meeting is to elect the Directors of the corporation, but may include any other matter within shareholder control. Notice of the annual meeting must be in writing and sent to shareholders within a specified period of time, usually between 10 and 60 days prior to the meeting. Check your state's corporation statute for the minimum notice requirements, the specifics of which should be set forth in your corporation's Bylaws.
Organizations Related to Shareholder's Rights Law
- Committee of Concerned Shareholders
The Committee of Concerned Shareholders ("Committee"), formerly known as the Committee of Concerned Luby's Shareholders, consisting of individual shareholders of Luby's, Inc. ("Luby's") who met on a Yahoo! Finance Message Board in 2000, is the first grass-roots shareholder group to conduct a formal proxy fight. Luby's, then headquartered in San Antonio, Texas, was a 235-unit cafeteria chain with annual sales of approximately $500 million. Its shares are listed for trading on the New York Stock Exchange ("NYSE").
- Shareholder Rights Committee - International Corporate Governance Network (ICGN)
The aim of the Shareholder Rights Committee is to promote the ICGN’s position, as expressed in its Statement of Global Corporate Governance Principles, on the rights of shareholders. To this end, the Committee members monitor developments in their own and other markets. The Committee submits comment letters where there are concerns that current or proposed practice or regulation contravenes the rights of shareholders.
- Shareowners Organization
ShareOwners.org, incorporated as a 501c3 non-profit organization, was founded to create a voice for the average retail investor, who has not been heard in the corporate board room, Washington policy debates, or by the decision-makers in large financial institutions, including mutual funds. We call ourselves “shareowners” because we are the long-term owners of the companies in which we invest and we seek long term wealth creation by being responsible and engaged owners.
- United States Proxy Exchange
The United States Proxy Exchange (USPX) is a non-government organization, incorporated in the Commonwealth of Massachusetts, dedicated to facilitating shareowner rights, primarily through the proxy process. The USPX is structured as a chamber of commerce. Unlike a typical chamber of commerce, which represents corporate managers, we represent shareowners.
Publications Related to Shareholder's Rights Law
- Corporate Board Member Magazine
Corporate Board Member magazine is an information resource for senior officers and directors of publicly traded corporations, top private companies, and Global 1000 firms. Published quarterly, each issue provides readers with decision-making tools to help them deal with the challenges confronting their boards. Topics include corporate governance, board trends and best practices, director compensation, director liability, board education, board size and make-up issues, management succession, recruiting directors, board advisors, shareholder activism, audit committee issues, and much more.
- Shareholder Rights - All Business
The best tips and advice from our vast library of articles, videos, and business tools.
- What is a Shareholders' Agreement? (FAQs)
A Shareholders' Agreement (also called a "Stockholder" Agreement) is an agreement between all or some of the shareholders (or "stockholders") of a Corporation. This contract establishes the rights of shareholders and the duties and powers of the Board of Directors and management.
Articles on HG.org Related to Shareholder's Rights Law
- Possible Invalidity of a Clause Concerning the Gratuitous Reassignment of Shares - GermanyIf the shareholder has shares that are, pursuant to the memorandum of association, to be gratuitously assigned back after the expiration of the agreement, which he previously acquired in return for consideration, this clause is potentially void.
- Transfer of Right of Shares - IndonesiaCompanies’ authorized capital is divided into shares. Shares is a moveable goods which give rights to the owner to attend and to vote in the General Meeting of Shareholders (“GMS”), to receive the payment of dividends and the remaining asset as the result of liquidation, and also to perform other rights as set out under Law Number 40 of 2007 on Limited Liability Company (“Company Law”).
- Singapore Business Law - Shareholders' Agreement : What's In It for Me?Why do you need a Shareholders' Agreement? Reducing uncertainty, providing investors with evidence of stability in the business; minimizing the cost of a business break up; planning for retirement and business succession are some of the many reasons why you might want a shareholders' agreement. This articles examines the legal issues that a Shareholders Agreement should address.
- Financially Distressed Company – Judicial Oversight in Disposing of the Primary Residence of the Shareholder – South AfricaIt is common for a company, a close corporation or a trust to be the registered owner of immovable property. It is also common for a shareholder, a member or a beneficiary to reside in the property owned by a legal entity. There are all sorts of reasons why a natural person would deliberately use a legal entity as a vehicle to own property.
- Article #7 – Summary and Plan of Action for Stock Option, Restricted Stock, Cash and Phantom Stock PlansThis is article #7 of a 7 article series. In this article #7, I give you 7 steps to implement your stock option plan, restricted stock plan, cash plan, phantom stock plan or stock appreciation rights. To review, there are two types of incentive plans: equity plans and cash plans. I discussed equity plans, that is, stock option plans and restricted stock, in prior articles #2-5. I discussed cash plans, phantom stock plans and stock appreciation rights in article #6.
- Article #6 – Cash Plans, Phantom Stock Plans and Stock Appreciation RightsIn this article #6, I explain how you use cash plans, phantom stock plans and stock appreciation rights. To review, there are two types of incentive plans: equity plans and cash plans. I discussed equity plans in prior articles #2-5. With an equity plan, you give employees stock options or restricted stock. Equity means ownership, so with an equity plan you give ownership in the company to the employees.
- Classification of Shares in Limited Liability Companies - IndonesiaShare is a proof that shareholders have conducted a full deposit of capital in Limited Liability Companies (“Company”). Shares in Company are classified based on similar characteristics, it is called classification of shares. Article 53 paragraph (1) of Law Number 40 of 2007 on Limited Liability Companies (“Company Law”) states that the Articles of Association (“AOA”) specifies more than one class of shares.
- Increase of Capital - IndonesiaBackground - A Limited Liability Companies (“Company”) may gain their capital by increasing its capital, the process is performed based on General Meeting Shareholder’s (“GMS”) Resolution. According to Article 41 paragraph (2) of Law Number 40 of 2007 on Limited Liability Companies (“Company Law”),
- Equity Plans, including Stock Options and Restricted Stock - Article 2In this article #2, I explain how you use equity plans, that is, stock option plans and restricted stock plans to reward and encourage your employees. Equity means stock or ownership, so with an equity plan you give ownership in the company to the employees. This article applies to both stock option plans and restricted stock plans.
- Pledge of Shares - IndonesiaLaw Number 40 of 2007 on Limited Liability Company (“Company Law”) only recognizes the classification of registered shares. However, Article 53 paragraph (1), (2) and (3) of Company Law states that, the Articles of Association may determine more than one classification of shares. If there is more than one classification of shares, then the Articles of Association determines one of them as common share.
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