Best shareholding Sacco led by Kenya Bankers Sacco
A shareholder is any person, company, or institution that owns at least one share of a company’s stock. Because shareholders are a company’s owners, they reap the benefits of the company’s successes. Although they are partial and residual owners of the company, shareholders do not manage a firm’s operations. Being a shareholder isn’t all just about receiving profits, as it also includes other rights and responsibilities.
- Brainstorming and deciding the powers they will bestow upon the company’s directors. This might include appointing and removing them from office.
- Deciding on how much the directors receive for their salary. The practice is very tricky because stockholders must make sure that the amount they will give will compensate for the expenses.
- Making decisions on instances where the directors have no power over. For example, making changes to the company’s constitution.
- Shareholders must retain effective mechanisms to examine the affairs of the company and voice concerns to the company and its managers. Shareholder participation is vital in ensuring accountability of the company’s board and management.
- To attend, in person or via conference call, the corporation’s annual meeting to learn about the company’s performance.
- To vote on major corporate matters, such as who sits on the board of directors and whether a proposed merger should occur.
- To inspect the company’s books /records and sue the corporation for misdeeds of the directors and officers.
Importance of shareholders in business
Shareholders are the owners of companies. A small business may have just one shareholder, the founder, while a public company may have thousands of individuals. Shareholders are important to a business. They are a major source of capital and their money is what is used to start a business and help it to continue its operations.
Below are some of the importance shareholders bring to a company:
- Financing of a Company. –One of the primary reasons for going public is to raise funds from investors. In return, the company’s founders give up part ownership to these new investors.
- Operation. – Shareholders play both direct and indirect roles in a company’s operations. They elect directors who appoint and supervise senior officers, including the chief executive officer..
- Control of a Company. – Shareholders usually determine who controls a public company. Institutional shareholders may publicly call on company management to consider strategic options, such as selling off the company or merging with another company.
- Dividends – Dividends are periodic payments that some companies give to shareholders based on company profits. However, not all companies pay dividends. Many choose to reinvest all profits back into their operations rather than distribute earnings.
- Stock Appreciation. – The primary reason most investors buy stock is that shares of stock have the potential to appreciate over time. When you are shareholder you can offer your shares of stock for sale at any time..
At Kenya Bankers, we are one of the best shareholding Saccos in Kenya. If you would like to know more about us, visit our website for more details. You can also give us a call on 0205146500 if you have any questions about shareholding.