Mention the rights and duties of Shareholder


The companies Act gives various rights to the shareholders of a company. The important rights are mentioned below:

  • A shareholder can attend and vote in the general meetings of the company. The shareholder does not ordinarily posses the right to vote, but the article of company may give him that right.
  • A shareholder has certain rights in respect of accounts.
  • A shareholder has right to inspect the minutes of the proceedings of any general meeting without any charge.
  • A shareholder has right to Inspect the register and index of members and debenture holders and the annual returns, without any charge.
  • A shareholder can transfer his share, subject to any restrictions that may be contains in the articles.
  • A shareholder can apply for the winding up in the company under certain circumstances. .
  • Preference shareholders are entitled to get dividends.
  • Shareholders have the right to apply to the central government for relief redress under certain circumstances.


A shareholder has certain duties. They are given below:

  • A shareholder must pay the unpaid amount due to the share, when calls are made;
  • In case of liquidation of a country the shareholders are to be placed in the list of contributors.
  • In certain case a transfer of share is still liable for the unpaid shares of a company.
  • The memo and the articles constitute a binding contract between the shareholders and the company.
  • All the shareholders are bound to follow the decision of thee majority of the shareholders.