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Tagged: Board of Directors, Dividend, Refund
No, shareholder do not have any rights to ask for a refund from the company, instead he can go to the secondary market and sell his shares to recover his capital invested. Similarly he has no rights to ask for dividends, The company decides whether to distribute the accumulated profit or to reinvest in business.
Share holders no rights to ask for Refund or dividends.
No Share holder can never ask for refunds – In turn he can sell off his shares in a market to someone who is willing to purchase the same,
Dividends are usually issued in consensus with the board of directors and here too retail people have very less say unless they hold substantial share quantity and are in the board of directors.
A share holder can sell his share at the market price at that particular point of time. If he wants to sell his shares at a particular time, he has the rights to wait for the market price to reach the particular price and could sell/buy at that time. He has the right to hold the share as long as he wants. But he doesnt have the right to ask for refund. The shareholder can request for dividends if he wants, but it totally depends on whether the CEO of the company decides to pay dividend or to transfer the profit to a new venture. If the shareholder owns a big part of the company, he might become a part of the board where he has a say in transferring cash to the new venture/dividends.
Share holder does not have a right to ask a refund but he can sell his shares in the secondary market. in same way he doesn’t have rights to ask dividends the company decision is to give or not to give.
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