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James Mather
James Mather,
Category: Law
Satisfied Customers: 22629
Experience:  Senior Partner at Berkson Wallace
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I own 1% of a company, do I have rights to ask for financial

Customer Question

I own 1% of a company, do I have rights to ask for financial reports?
Submitted: 4 years ago.
Category: Law
Expert:  James Mather replied 4 years ago.
-Could you explain your situation a little more?
Customer: replied 4 years ago.

I bought 1% of a friends company called Sumo Glove, which is a company that provides a glove effectively for fork lift trucks. It was around 5 years ago and the company has grown since then although I know has had a few ups and downs.


My question is what are my rights owning 1% ie can I ask for financial reports and can I collect any profits?

Expert:  James Mather replied 4 years ago.

Your shares may or may not be eligible for dividends. You only get any
dividend in the dividend is declared by the directors. Not all shares are
eligible to participate in dividends and you need to look at the class of share
that you own.

You are not entitled to a share of the profits in most cases

You are entitled to a financial report every year

you are entitled to any increase in the share value as a result of the
company doing well and by the same token, company does not do well, your shares
will decrease in value. Of course, you will only realise any gain on the share
price if you come to sell them.

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