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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?
Your shares may or may not be eligible for dividends. You only get anydividend in the dividend is declared by the directors. Not all shares areeligible to participate in dividends and you need to look at the class of sharethat 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 thecompany doing well and by the same token, company does not do well, your shareswill decrease in value. Of course, you will only realise any gain on the shareprice if you come to sell them.
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