Explain the four fundamental rights of ownership
A shareholder, by virtue of being an owner, is generally entitled to four fundamental rights of ownership:
1. Claim on a share of the company's undivided assets in proportion to number of shares held (this isn't to say that he can return shares and get a part of the assets, he won't get it),
2. proportionate voting power in election of Directors and other business conducted at annual general meeting that can be exercised either by attending of the meeting or by Proxy.
3. Dividends, when earned and declared by Board of Directors, as also a proportionate share in residual earnings which the company retains
4. Pre-emptive right to subscribe to extra share offerings before they are offered to general investors unless a special resolution has been passed in annual general meeting to the contrary.
The piece of paper which testifies ownership position of the shareholder in a company is known as a share certificate. The number of shares, their par value, certificate number, distinctive numbers, date of issue and owner's name are mentioned on share certificate.