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Shareholder

Shareholder

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Shareholder is the owner of one or more shares, ie shares of the company. Shares are securities connected with certain rights.

There are property rights and non-property rights connected with shares. Non-property rights include mainly the shareholder's right to participate in corporate governance, which is exercised through General Meetings. There are other non-property rights such as the right to seek nullification of a resolution passed by the General Meeting, if the shareholder doubts its validity.

Property rights include the right to share in profits (dividends) or liquidation value (if the company was wound up with liquidation).

Some shareholders have a wider range of rights. Shareholders owning certain percentage of all shares (in company with equity capital lower than 100 mil. CZK at least 5%; if the capital is less than 500 mil. at least 3%; and above 500 mil. at least 1%) are qualified shareholders. This status, for example, allows them to request convening a General Meeting, request the Supervisory Board to review the performance of activities of the Board of Directors. Dominant shareholders may in certain cases also carry out a compulsory transfer of the securities of minority shareholders - squeeze-out.  

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