The shareholders of a company are also known as the investor(s) or owner(s) of the company. They invest and hold shares in the company.
In Singapore, as mandated by the Accounting and Corporate Regulatory Authority (ACRA) and The Companies’ Act, all companies must appoint at least 1 shareholder, with at least 1 share and a minimum issued paid up capital of S$1.
Who can be a shareholder?
Any individual aged 18 years and above is legally allowed to become a shareholder of a company.
Shareholders are not limited to only individuals. Corporate entities (i.e. another company) can also become a shareholder of the company.
There is a limit of 50 shareholders in every private limited company. All information of the shareholders will appear on public records.
Must there be a local shareholder in the company?
In Singapore, there is no requirement of local shareholder. This means that the shares or ownership of the company can be held 100% by a foreigner.
Can a shareholder be a director of the same company?
A shareholder of the company can also be appointed as the director of the company and vice versa. The company will be allowed to incorporate in Singapore as long as there is at least 1 director in the company who is considered a local. Click here for more information on company directors and requirements.
What are the benefits or rights of a shareholder of a company?
As a Shareholder,
- You are entitled to receive a share of the profits when the company does well and declares a dividend.
- You have the right to vote on certain matters with regard to the company and can be elected to a seat on the board of directors.
- You have the right to attend and call for meetings
- You have the right to assets when winding up the company
- You have the right to be treated fairly in the company
What are the responsibilities of a Shareholder?
Shareholders of a company are responsible for ensuring that the full price of the company’s shares have been paid for and they also have to ensure that they attend and participate in the general meetings of the company.
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