Archive for the ‘Company’ Category

Rights of ShareholdersIncreasing interest in investment in the stock of some people, I think it is essential to know in advance the rights of an investor as a shareholder of a company, which is sometimes overlooked or did not receive adequate information.

1. Participate in the distribution of corporate earnings and assets resulting from liquidation: This right is to say that you rule the perception of the dividend and a liquidation of the society so that you are a shareholder was liquidated.

2. Refusal in the issue of new shares and convertible bonds: When a company decides to make a capital increase, the new shares must be offered on a preferential basis to existing shareholders in proportion to the fraction of capital represented by shares. This right may be excluded by the general meeting of the society but now the government is working to pass a law that prevents companies may limit the rights of certain shareholders.

3. Right to attend and vote at meetings: In short, you are entitled to speak and vote at general meetings, and if the company makes use of its right to require a minimum number of shares have the possibility to group yourself with other shareholders and elect a representative to be present.

4. Information: At all times have the right to know what happens to the company and ask for information on new decisions, company accounts and issues have been discussed in general meetings if you could not attend.

In short, when you invest in shares of a company, you’re part of the company and have a right to influence decisions of this company. As part of this society, you are for good and for bad, bad thing considering the fact that a wrong decision, the society loses value in their actions and therefore, as an investor, you’ll reduce your earnings.

That’s why we insist that the choice of a value, you should bring a thorough analysis of a business, studying their business plans, future projects, the power of growth in the sector and possible alliances with other companies .