Powers of Shareholders
The Incorporation of a Company involves a person or persons coming together, creating new business ideas, analyzing its technical as well as economic feasibility, determining and raising the adequate capital needed for the survival of the business and upon foreseeing a favorable picture, the Company is registered under the relevant form. More often than not, the above persons are the Shareholders of the Company. They can be referred to as the founding brain and pocket of a business.
A Shareholder is any person, Company, or institution that owns at least one share of a Company’s stock or shareholding. Shareholders essentially own the Company, and their ownership comes with certain responsibilities, rights, and powers.
In the course of these incorporations, the Shareholders appoint Directors who have powers over the day-to-day running of the Company as well as instituting actions on behalf of the Company. As a result of this factor, the powers of Shareholders, not being so popular, have been watered down.
The Companies and Allied Matter Act (CAMA) 2020, has made provisions for the rights and powers of shareholders and some of these powers shall be discussed below.