Rights of a Shareholder

We can familiarise you with and help you enforce your rights as a shareholder.

There are a whole host of rights that you have as a shareholder, and it is key you understand what they entail to achieve your commercial goals.

You may think that there is just one ‘set’ of rights applicable to all shareholders. Whilst there are some common denominators, it is possible to attach (or remove) any number of different rights to shares. We have many years' experience in navigating these arrangements. Generally speaking however, public awareness of even the most basic rights of a shareholder is poor.

The law in England and Wales provides flexibility in allowing companies to be set up with many different classes of shares with widely varying rights attached to each share.

Most companies use the ‘default’ set of rights provided for by the law - the model articles of association. In those companies, the rights attached to each share can become a ‘numbers game’ with more shares providing the owner with more power and rights. If you gain control of more than 50% of the issued shares, this generally means you can control most (if not all) of what a company does.

We've listed the key shareholder rights and restrictions at all levels of shareholding in private companies. If you require assistance, we can advise you on how these rights translate to your own situation.