{"id":7902,"date":"2020-06-13T20:22:37","date_gmt":"2020-06-13T19:22:37","guid":{"rendered":"https:\/\/www.qualitycompanyformations.co.uk\/blog\/?p=7902"},"modified":"2022-03-07T11:46:21","modified_gmt":"2022-03-07T11:46:21","slug":"rights-shareholders-of-a-company-have","status":"publish","type":"post","link":"https:\/\/www.qualitycompanyformations.co.uk\/blog\/rights-shareholders-of-a-company-have\/","title":{"rendered":"What rights do shareholders of a company have?"},"content":{"rendered":"
Whilst directors are responsible for managing a company, it is the shareholders (members) who own the business. Consequently, shareholders have certain rights, which are enshrined in the Companies Act 2006<\/a>, the articles of association, and shareholders’ agreements. In this post, we will consider some of the main statutory rights of shareholders.<\/p>\n Our Fully Inclusive Package - the perfect way to form a company<\/span><\/a>\n \n All company shareholders have the right to:<\/p>\n In addition to their statutory rights, of which some of the key ones have been outlined above, members may have additional rights contained in the articles of association and shareholders’ agreement.<\/p>\n All limited companies are required to adopt articles of association<\/a> as part of the incorporation process. This document essentially sets out the rules which govern how the company operates.<\/p>\n The articles will normally include provisions defining certain rights of shareholders, such as those related to decision-making processes (e.g., voting in general meetings) and payments of dividends.<\/p>\n Although it is not a requirement for a limited company to put in place a shareholders\u2019 agreement, many choose to do so. Supplemental to the articles of association, it generally serves to clarify the powers and rights of shareholders.<\/p>\n What is a shareholders\u2019 agreement and why do I need one?<\/span><\/a>\n \n Some shareholders\u2019 agreements may define how dividends are to be distributed among members and specify additional voting rights, or any rules regarding the transfer or sale of shares.<\/p>\n It is important to note that some shareholders will have different rights compared to other members, irrespective of the quantity of shares they hold.<\/p>\nRights of all shareholders<\/h3>\n
\n
Rights of shareholders possessing at least 5% of shares<\/h3>\n
\n
Rights of shareholders possessing at least 10% of shares<\/h3>\n
\n
Rights of shareholders possessing more than 10% of shares<\/h3>\n
\n
Rights of shareholders possessing at least 15% of shares<\/h3>\n
\n
Rights of shareholders possessing more than 25% of shares<\/h3>\n
\n
Rights of shareholders possessing at least 50% of shares<\/h3>\n
\n
Rights of members holding more than 50% of shares<\/h3>\n
\n
Rights of shareholders possessing at least 75% of shares<\/h3>\n
\n
Rights of shareholders possessing at least 90% of shares<\/h3>\n
\n
Articles of association, shareholders’ agreements, and class rights<\/h3>\n
Articles of association<\/h4>\n
Shareholders\u2019 agreement<\/h4>\n
Class rights<\/h4>\n