What are the characteristics of a company limited by shares? - ProProfs Discuss
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What are the characteristics of a company limited by shares?

What are the characteristics of a company limited by shares?

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Asked by Hdtchr, Last updated: Apr 20, 2024

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F. Lopez

F. Lopez

F. Lopez
F. Lopez

Answered Sep 17, 2019

There exists an agency relationship between corporate management and shareholders, Shareholders can vote at the company's Annual General Meeting, and A company is a separate legal entity apart from its owners. Shares are represented by individuals of the company.

Once a person takes out a share, they become an owner of the company. Shareholders are important parts of the company, because they can choose who works for the company and if a company should be sold or merged. The shareholder will also receive a part of the profits.

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hdtchr

hdtchr

hdtchr
Hdtchr

Answered Oct 03, 2017

There exists an agency relationship between corporate management and shareholders.
Shareholders can vote at the company's Annual General Meeting.
A company is a separate legal entity apart from its owners.

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