In Nigeria company law, and subject to the specific constitution of each company as is the case in the law of many other countries ,shareholders have 3 basic rights
- A right of ultimate control over the company expressed in a right to vote in decisions having a bearing on the company’s constitution the appointment and dismissal of directors and the size ,organization and scope of the company
- The right to receive information on the affairs of the company which will enable them to exercise intelligently their other rights
- The right to receive financial returns
Proportional of the dividends declared by the directors and a proportion of the firm’s net assets in the event of liquidation
Right of Ultimate Control
Shareholders usually have the right of ultimate control over the affairs of the company in the sense that they can appoint directors and in this way
If a sufficient number of shareholders are determined to implement a certain policy in the company. They have the means to ensure that ultimately they prevail.
Right to Information
The second essential right that most legal systems guarantee to shareholders is the right to the necessary information which will allow them to exercise meaningfully their right to ultimate control. The level grants shareholders access to some company registers and most importantly regulate the issuance by the company of financial statements.