Discuss the rights of shareholder under SEBI Listing Obligations and Disclosure Requirement (LODR) Regulations, 2015.

CS Professional · Ethics, Governance and Sustainability · PYQS · June 2018
Discuss the rights of shareholder under SEBI Listing Obligations and Disclosure Requirement (LODR) Regulations, 2015.

Answer & Explanation:

The right of shareholders under SEBI (LODR) Regulations, 2015: (a) The Rights of shareholder: The listed entity shall seek to protect and facilitate the exercise of the following rights of shareholders: right to participate in, and to be sufficiently informed of, decisions concerning fundamental corporate changes. opportunity to participate effectively and vote in general shareholder meetings. being informed of the rules, including voting procedures that govern general shareholder meetings. opportunity to ask questions to the board of directors, to place items on the agenda of general meetings, and to propose resolutions, subject to reasonable limitations. effective shareholder participation in key corporate governance decisions, such as the nomination and election of members of board of directors. exercise of ownership rights by all shareholders, including institutional investors. adequate mechanism to address the grievances of the shareholders. protection of minority shareholders from abusive actions by, or in the interest of, controlling shareholders acting either directly or indirectly, and effective means of redress. (b) Timely information: The listed entity shall provide adequate and timely information to shareholders, including but not limited to the following: sufficient and timely information concerning the date, location and agenda of general meetings, as well as full and timely information regarding the issues to be discussed at the meeting. capital structures and arrangements that enable certain shareholders to obtain a degree of control disproportionate to their equity ownership. rights attached to all series and classes of shares, which shall be disclosed to investors before they acquire shares. (c) Equitable treatment: The listed entity shall ensure equitable treatment of all shareholders, including minority and foreign shareholders, in the following manner: All shareholders of the same series of a class shall be treated equally. Effective shareholder participation in key corporate governance decisions, such as the nomination and election of members of board of directors, shall be facilitated. Exercise of voting rights by foreign shareholders shall be facilitated. The listed entity shall devise a framework to avoid insider trading and abusive self-dealing. Processes and procedures for general shareholder meetings shall allow for equitable treatment of all shareholders. Procedures of listed entity shall not make it unduly difficult or expensive to cast votes.

Topics: SEBI Regulations

Open in Interactive Practice Hub · Full Practice Hub · Chapter Weightage · More in this subject

Related Questions in this Topic