In addition, shareholders are entitled to be provided, on demand and without charge, with a copy of the company’s last annual accounts and the last directors’ report and any auditor’s report on those accounts (together with any statement on the auditor’s report).
Question: Can shareholders insist on seeing management accounts, bank statements or other detailed financial information? Answer: No. Their rights to see financial information are limited to the company’s annual filed accounts.
Can shareholders inspect books of accounts? The members of the company are not vested with any such right to inspect the books of account anywhere specifically in the Companies Act, 2013. However, the articles of the company can provide for such right of inspection for its shareholders and the timing for it.
What rights do shareholders have?
- 1 To attend general meetings and vote. …
- 2 To receive a share of the company’s profits. …
- 3 To receive certain documents from the company. …
- 4 To inspect statutory books and constitutional documents. …
- 5 To any final distribution on the winding up of the company.
At a general meeting, the shareholders can also pass a resolution telling the directors how they must act when it comes to a particular matter. If this is done, the directors must then take the action that the shareholders have decided upon.
Rights of all shareholders
All company shareholders have the right to: Inspect company information, including the register of members (s. 116 Companies Act 2006) and a record of resolutions and minutes (s. 358) without any charge.
Approving the company’s final dividend. Appointing or re-appointing the company’s auditors. Electing or re-electing the company’s directors. Approving amendments to the company’s articles of association.
Under company law, certain decisions can only be made by shareholders who hold over 50% of the shares. Shareholders with 51% of the equity have the power to appoint and remove directors (and thus change day to day control) and to approve payment of a final dividend.
Stockholders generally do not control day-to-day business decisions or management decisions, but they can influence business management indirectly through an executive board.
Access to financial reports
A second option for obtaining information is for a shareholder to request a financial and directors’ report pursuant to section 293 of the Act. … This right to information is also limited to small proprietary companies.
Members of a small proprietary company with at least 5% of the votes can direct the company to prepare and circulate financial reports to all shareholders. The request may specify that the financial report is to be audited.
Shareholders may inspect and copy any of the previously listed business records provided that written notice is given to the corporation at least five business days before the date they intend to inspect and copy.