What rights do shareholders have?

However, most shareholders have the right to attend shareholder meetings, vote on key issues, sell their shares and share in the company’s profits. However, the Corporations Act allows for a company to determine the rights and restrictions attached to a certain class of shares.

What happens if you become a shareholder?

In some cases, becoming a shareholder entitles you to take part in certain decision-making processes of the company. As a part owner, you can attend shareholder meetings. You can also stay up to date with the company’s business and influence material decisions by voting.

Are there risks to becoming a shareholder in a company?

There are very few risks to becoming a shareholder in a company. The underlying reason for this is that a company is a separate legal entity. This means the company can: sue or be sued in its own name. The separate legal status of the company means that even if the company has debts, you are not responsible for those debts as a shareholder.