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Tagged: Board of Directors, Dividend, Refund
Share holder neither has right to ask for refund nor the dividend.
No, shareholders don’t have the rights to ask for refund and dividend, even if they are part owner of the company. Company may refund only in buy back instances, but that depends solely on the company. Company may or may not give dividend. Only option a shareholder has is to transfer the stock(s) to someone else.
The share holders do not have the right to ask for a refund. This is to protect the company and that is the role of the stock market to allow exchange of shares from buyer to the seller and vice versa. After the IPO the company accumulates the required funds from the public and proceeds with the predetermined plan. If the primary investor requires the money he goes to the secondary market and sells his stake to another buyer who wishes to invest in that company.
Dividend also cannot be demanded . It is the decision of the director to declare dividend or to reinvest in the company thereby making it stronger . This will eventually push the share price in the stock market and benefit the share holder.
Share holders does not have the right to ask for refund /Dividends. A share holder can get his money back by selling his shares in stock market. Giving Dividend to share holders is solely at the discretion of the company .
Shareholders cannot ask for refund nor dividends. It is the prerogative of the company to declare dividends or not.
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