Shareholders are persons whose names are endorsed in share certificates as owners of shares in a company. They have various rights including attending meetings, inspecting company records, demanding statutory reports, appointing directors and removing directors. Shareholders' liability is limited to the face value of shares they hold. Companies must issue share certificates within 90 days of allotment or 45 days of transfer. If shares are forfeited or a shareholder loses membership, they remain liable for company debts for up to one year if the company winds up. A register of members must contain members' names, shares held, dates of acquiring and paying for shares, and date of ending membership.

1. Objective
To Learn
1. Share holder
Share holder :
The personwhose name is indorsed in
share certificate,
A personwho holds share in a
company
Right of share holder :
I. Can attend the Meetings
II. Can inspect the Company Registers
III. Can demand the Statutory report
IV. Can appoint the Inspector
V. Can pass the Resolution
VI. Can appoint the Director
VII. Can remove the Director
VIII. Can sue
IX. Can call for the abstractof debenture
holder
X. Can demand for the copies of MOA
.AOA etc
Liability of share holder :
Up to the face value of the respective
share
Time for issuing a certificate :
In case of allotment
with in 90 days
In case of transfer
with in 45 days
Duplicate certificate :
If lost or defaced (with in 45 days )
Forfeitures of share :
Director are empowered
Cease to be a share holder
Up to one year he is liable to the
company in case of winding up
The aggrieved party may sue
against forfeiture
stock :
Is the aggregate of fully paid up shares
Qualification for member:
General principles of contract will applies
Minor:
Void
If the name of minor is entered as a
member the minor can repudiate the contract
even he received the dividend.
Company:
If authorized by its MOA for doing so
Lose of Membership:
I. By transfer his shares
II. By forfeiture of his share
III. By valid surrender of his share
IV. By sale by the company
V. By his death
VI. In case of defective capacity
VII. On winding up
VIII. On rescission of contract on the ground
of misrepresentation (except subscriber )
Register of Member:
I. Name and particular
II. The amount and number of shares
III. The date of acquiring share
IV. The amount paid on the share
V. The date of entry
VI. The date when a membercease to
be a member,
Index of member:
Having memberof 50 or more
(Concise statement of memberwith
reference)
Annual list of member:
Once in year (having share capital)
Particular of director
Chief executive
Subject: Company Law
Standard: LL.B second year
Topic: shareholder
MUNIR HUSSAIN KTK
Lecturer
UNIVERSITY LAW COLLEGE
QUETTA
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