A shareholder is a person who owns at least one share in a public company. Each share represents a fraction of the company’s capital stock.
The shareholder’s liability is limited to the amount of capital stock they own, which means that they cannot lose more than their original investment.
Shareholders have certain rights in the company:
-Right to attend and vote at General Meetings. The right to vote is extremely important as this is how shareholders exercise their influence over the company’s management. Shareholders are not only required to approve the company’s results but also to vote on major events in the company’s life, such as amendments to the by-laws, transactions involving the capital stock, etc. Shareholders have the opportunity to vote once a year at Faurecia’s Annual General Meeting held in May.
-Right to a share in the company’s earnings. Each year, provided the company makes a profit, shareholders will receive a fraction of the year’s earnings for each share they own, in the form of a cash dividend. The proposed dividend must first be approved at the Annual General Meeting. Shareholders do not need to take any specific action to receive their dividend, as the amount due will be credited directly to their account with their financial intermediary.
-Right to receive information about the company. A company listed on the stock exchange must promptly advise its shareholders, who are the real owners, of any events that might influence its share price, any change in its financial position or any event likely to influence its future prospects or outlook. Faurecia informs its shareholders regularly through its website, annual reports and legal announcements published in the financial press and the BALO legal journal.
Shareholders also have other rights:
-Right to stand for the office of Director
-Pre-emptive rights over new share issues (unless this right has been expressly waived by the shareholders at their Annual General Meeting)
-Right to sell and trade the shares
Shareholders not only have rights, but also certain duties.
Shareholders should take a regular interest in the life of the company and its share price. This is essential if they are to fulfill their role as owner of the company and monitor trends in the value of their assets.
Shareholders should exercise their right to vote at Annual General Meetings. Each vote is important for Faurecia, as it represents the shareholder’s approval of how the company has been managed. Taking part in the AGM demonstrates the shareholder’s involvement in certain key issues in the company’s life.