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Investors’ rights under CAMA

By PETER EGWUATU

Right to attend any general meeting of the company; Every shareholder of a company has the right to attend any general meeting declared by the company, according to CAMA. It does not matter the number of unit of shares the person has in the company. A shareholder has the right to query a company for not receiving notice to attend any general meeting.

Right to speak in person or proxy on any resolution proposed at Annual General Meeting (AGM): A shareholder or his/her representative has the right to speak at any general meeting if recognised by the chairman of the meeting. If a shareholder is indisposed to attend any general meeting, he or she can delegate someone else to attend the meeting.

Right to inspect the register of members and right to share certificate; Shareholders have right to look at the register of members in a company, as well as demand for share certificate when a new share is bought. Though,  SEC has been canvassing for the eradication of physical share certificate and is making frantic effort by educating the investing public on the need to embrace electronic recording of shareholding.

Right to transfer shares and right to request for extra-ordinary general meeting: Shareholders have the right to transfer their shares to another person provided appropriate information about the person is provided. In this case, the registrar of the company need to be notified and document filled and signed.

Furthermore, shareholders have the right to call for extra ordinary general meeting if the need arises.  Once a two-third of shareholders members present in a meeting move for extra ordinary general meeting to trash an issue, the board has no choice than to oblige.


Disclaimer

Comments expressed here do not reflect the opinions of vanguard newspapers or any employee thereof.