Individual and Corporate Shareholder
What is a shareholder?
A shareholder is an owner of a company as determined by the number of shares they own in this company.
A shareholder can be an individual or a company (corporate shareholder) who owns one share or multiple shares of the company.
The rights of a corporate shareholder are exactly the same as the rights of an individual shareholder.
What is a corporate representative?
A Corporate shareholder has to appoint a corporate representative to attend general meetings, sign relevant documentation (such as a Members Resolution), and represent their needs.
Shareholder roles and responsibilities
- Shareholders in Singapore may pay the full amount for their shares at the time they are subscribed. Alternatively, they may also pay a partial amount of the shares and subsequently pay up the remaining amount.
If the Company subsequently does a call for payment of unpaid shares, these unpaid shares will have to be paid.
- One of the key roles and responsibilities of shareholders is to attend and participate in Annual General Meetings (AGM) and Extraordinary General Meetings (EGM) of the company. It is during these general meetings that companies seek shareholders' approval on matters that affect the company.
- Having a direct line of communication with the company’s board of directors, shareholders in Singapore companies are tasked to voice their opinions and interests regarding company matters to the company secretary since they are not able to participate in the day-to-day management of the company.
Shareholder rights
- Right to vote: Subject to the company's Constitution, a shareholder is generally entitled to voting rights in accordance with the number and type of shares held in the company.
- Rights to dividends: The company directors have the right to recommend the payment of a dividend of a fixed amount. However, payment of final dividends require shareholders' approval at a general meeting.
- Right to be treated fairly: Shareholders can seek remedy from the Singaporean government in the event that the director’s actions are oppressive or in disregard of the interests of any of the shareholders or the act of the company.
- Right to call and attend meetings
- Right to assets on winding up of company: In the event that the company is wound up, any monies remaining after all debts, expenses and costs have been paid off are distributed amongst the shareholders of the company.
