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Powers and rights, Proxy: A person appointed by a shareholder to vote on…
Powers and rights
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Shareholder rights
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Equal treatment
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The CS should be on the look out for abuses against shareholders, especially minority shareholders
The OECD Principles state that minority shareholders should be protected from abusive actions by or in the interest of controlling shareholders acting either directly or indirectly and should have effective means of redress
Share in the profits
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As a minimum, they should ensure that the board complies with the policy when deciding the level of dividend to be paid as either a financial or interim dividend
Receipt of information
Shareholders should be kept sufficiently informed about the governance of an organisation and any fundamental changes occurring to or within the organisation
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For listed companies, listed companies must communicate information to shareholders and potential investor in a way as to avoid the creation of a false market in the company's shares
Attend meetings and vote
It is a basic right of shareholders to be able to attend general meetings of the companies that they invest in and vote on resolutions affecting the governance and any fundamental changes to the company
They should also be given the opportunity to ask questions to the board and to propose resolutions, within resonable limits
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Shareholders will only seek to call a general meeting of the company in extreme circumstances and possibly as a means of shaking the board of directors into re-thinking its attitude to the matter that is causing the shareholders extreme concern
CA2006 extended the statutory rights of shareholders to proxies. Shareholders are now able to appoint more than one proxy per shareholding as long as each proxy represents a different part of the appointee's holding.
Proxies are able to exercise all of any of the rights of shareholders to attend, speak and vote at a meeting on a show of hands or on a poll for the part of the holding they represent
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Proxy: A person appointed by a shareholder to vote on the shareholders behalf at a general meeting. In the UK, shareholders can appoint proxies electronically. They can either instruct a proxy how to vote on each resolution at a meeting or can give the proxy freedom to decide how vote on each resolution