A shareholder may be a person, company or other institution holding at least one share in a company. Since the shareholders are the owners of the business, benefits can be obtained if the business is successful, if the shares have increased in value. However, if a company does poorly, a shareholder could lose money if the share price falls. Fortunately, for most partners, they are not personally responsible for the company`s debts and any other financial obligations that may arise in relation to partnerships or individual companies. As a general rule, when the corporation is bankrupt, not all creditors can ask shareholders to pay something, but they can do so in the case of a private entity where the owner may be asked to pay the debts. A shareholder who is part of a shareholder pact has the same powers, rights and obligations as a company executive, as well as debts. This is consistent with the shareholders` pact on the directors` powers over the management of the company and when the director is relieved of his duties. The statutes (AOA) of a company are a document (which, together with the statutes, constitutes the statutes of the company). It expressly sets out provisions relating to internal management and the day-to-day affairs of the company. First, it defines the responsibilities of directors, share transfers and the means by which shareholders exercise control of the board of directors. As a parent document, it is a binding contract for all present and future members of the company.
The statutes can be amended by a special decision taken by 75% or more of the shareholders present and voted at a general meeting. The problem is to determine which parts are strong and which parts are flexible – in the law and in the articles. Here are some of the questions that may arise: the statutes are registered with the company`s registry office when setting up a company and all changes must be submitted to the Company Registration Office within a predetermined time frame. As a result, a company`s statutes are public documents that can be accessed by the public.