Business Ethics and Corporate Governance, Second Edition

RIGHTS OF SHAREHOLDERS

The members of a company enjoy various rights in relation to the company. These rights are conferred on the members of the company either by the Indian Companies Act of 1956 or by the Memorandum and Articles of Association of the company or by the general law, especially those relating to contracts under the Indian Contract Act, 1872.

Some of the more important rights of shareholders as stressed by the above acts are the following. The shareholder

1. has a right to obtain copies of the Memorandum of Association, Articles of Association and certain resolutions and agreements on request on payment of prescribed fees (Section 39);
2. has a right to have the certificate of shares held by him or her within three months of the allotment; ...