Fundamental Rights of a Stockholder

The rights of a stockholder are categorized into three: Management Rights, Proprietary Rights, and Remedial Rights.

Management Right

1. To attend and vote in person or by proxy at stockholders’ meetings;

2. To elect and remove directors;

3. To approve certain corporate acts;

4. To adopt and amend or repeal the by-laws or adopt new by-laws;

5. To compel the calling of the meetings;

6. To enter into a voting trust agreement; and,

7. To have the corporation voluntarily dissolved.

Proprietary Right

1. To transfer stocks in the corporate book;

2. To receive dividends when declared;

3. To be issued a stock certificate or other evidence of stock ownership;

4. To participate in the distribution of corporate assets upon dissolution; and,

5. To pre-emption/ to subscribe to all issues or disposition of shares of any class.

Remedial Right

1. To inspect corporate books;

2. To recover stock unlawfully sold for delinquent payment of subscription;

3. To be furnished with the most recent financial statements or reports of the corporation’s operation;

4. To bring suits (derivative suit, individual suit, and representative suit); and,

5. To demand payment in the exercise of appraisal right.

(Republic Act No. 11232 or The Revised Corporation Code)

Why choose ALBURO LAW?

Alburo Alburo & Associates Law Offices:

• Have labor law and business law as our main fields of practice. For almost a decade now, we have been helping businesses improve their productivity and profitability by helping them comply with relevant laws, rules, and regulations.

• Observe high standards of excellence.

• Always consider innovative approaches to effectively address the legal concerns of our clients, covering a wide range of industries such as food, manufacturing, chemicals, real estate, retail and wholesale trade, and services in fields such as information technology, human resources, security, training, process outsourcing and other manpower services, among many others.

Contact us: 09778050020 | 09778050015 | (02) 7745-4391

Email us: [email protected] | [email protected]

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