When it comes to the responsibilities of shareholders, the chart below shows the primary responsibilities that shareholders have when investing in a company. These primary responsibilities include voting in annual or special company meetings, serving as a mediator between the company and potential investors, and exercising oversight on the company in order to protect one’s investment.
Shareholders are required to vote in company meetings, either annually or in special meetings, in order to decide on various matters such as the election of board members, the approval of a merger, or the ratification of a share capital increase. As a shareholder, it is important to stay informed about the progress of the company and the matters being voted on.
As a part of their primary responsibility to the company, shareholders can also serve as a mediator between the company and potential investors. By providing potential investors with helpful background information about the company’s history and financials, shareholders can encourage them to invest in the company. In this way, shareholders are contributing to the growth of the company while also protecting their own investments.
Finally, shareholders have the responsibility of exercising oversight on the company in order to protect their investment. Shareholders may have access to detailed financial reports and other information to help them ensure that the company is being managed properly and that their investment is being well taken care of. Shareholders should also be actively involved in any major changes the company may want to make, as these changes could potentially affect the value of their investment.
In summary, the primary responsibility of shareholders is to stay informed and actively involved in the company’s progress and major decisions. By voting in company meetings, mediating between the company and potential investors, and exercising oversight on the company, shareholders can protect their investment while also helping the company to grow and succeed.