Shareholders in Singapore
Shareholders in SingaporeUpdated on Friday 18th September 2015
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Shareholders of Singapore companies
According to the Companies Act in Singapore, shareholders are the members of a company. All Singapore companies are required to have at least one shareholder. In a broader sense, a shareholder is the owner of the company. Shareholders are individuals who have invested certain amounts of money. In exchange they will receive returns of their investments in the form of distributions of the profits or in the form of an increase in the value of their investments over a longer period of time. In Singapore companies limited by shares, the shareholders are members who have purchased shares.
Shareholders also have certain rights and obligations which are established by the Commercial Code and by the Singapore company’s Articles of Association.
Shareholders’ rights and powers in Singapore
The shareholders of Singapore companies benefit from special privileges among which:
- - the right to vote in different matters,
- - the right to appoint the company directors,
- - the right to propose different resolutions,
- - the right to divide the company’s profits,
- - the right to purchase new shares,
- - the right to the Singapore company’s assets in case of liquidation.
Shareholders also have certain powers when it comes to the company. Among these are the power to adopt, alter or cancel provisions in the Memorandum and Articles of Association, the power to veto the reduction of the Singapore company’s share capital, the power to dismiss directors and appoint auditors.
For complete information about the shareholders rights and powers you may ask our Singapore lawyers.
Shareholders agreements in Singapore
Shareholders of companies in Singapore may also draft shareholders agreements that will set out the rules of the relations between them. The shareholders’ agreement may include certain rights and obligations of the shareholders additionally to the ones stated in the Memorandum and Articles of Association. Among these rules, shareholders may include provisions about how the company is run and how decisions will be made. The shareholders’ agreement may also establish the structure of the company, financing regulations and how the Singapore company will be managed. Shareholders’ agreements may also contain certain confidentiality clauses.
For more information about the provisions of the Commercial Law with respect to shareholders, please contact our law firm in Singapore.