Section 1.1.2 of the Code of the Code of Corporate Governance Practices for Issuers of Securities to The Public 2015
defines the equitable terms of shareholders to includes the treatment of shareholders equally according to the rights conferred on them including:-
- the right to attend general meetings;
- the right to vote in general meetings;
- the right to receive a copy of the annual report and financial statements of the company;
- the right to receive a dividend; and
- the right to the product of liquidation;
Section 3.1 of the Code of Corporate Governance Practices for Issuers of Securities to The Public 2015 provides for the rights of shareholders.
It states that the Board shall facilitate the effective exercise of the rights of shareholders which include: –
- All shareholders shall receive relevant information on the company’s performance through the distribution of annual reports and accounts, and half-yearly results as a matter of best practice. Such reports shall be availed across multiple communication channels suitable to shareholders’ different media consumption habits. These include websites, postal mail and newspapers.
- All shareholders have a right to receive relevant sufficient and timely information concerning the date, location and agenda of the Annual General Meeting as well as full and timely information regarding issues to be decided during the Annual General Meeting. Such information shall be received at least 21 calendar days before the Annual General Meeting.
- The shareholders have a right to a secure method of transfer and registration of ownership of their shares.
- Every shareholder has the right to participate and vote at the general shareholders meeting.
- Every shareholder is entitled to a distributed profit, in form of dividends, and other rights for bonus shares, scrip dividend or rights issue, as applicable and in the proportion of its shareholding in the company.
Further to this the Companies Act, 2015 under section 114 provides that a shareholder has the following rights-
- the right to be sent a proposed written resolution;
- the right to require circulation of a written resolution;
- the right to require directors to call a general meeting;
- the right to receive notices of general meetings;
- the right to require circulation of a statement (accompanying, explaining, in support of or against a resolution). If the directors refuse to circulate the resolution, you can circulate the resolution at your own cost then ask for compensation of the cost;
- the right to appoint a proxy to act at a meeting;
- the right to be sent a copy of the company’s annual financial statement and reports; and
- if the company is a public company, the right to require the circulation of a resolution for the annual general meeting of the company.