COMMERCIAL LAW

Principles of Commercial Law



Principles of Commercial Law

Introduction

The paper deals with two scenarios in regards with corporate law and decision making, The first scenario is about the rights and duties of shareholders where the case of HydroPower Limited is used. The second scenario deals with the case of information sharing and its usage which incorporates the example of Worldex Pty Ltd. In later part of the paper, we will be discussing the 4 chapters of the book as well.

Case 1: HydroPower Limited

The main classification of shareholder rights

Shareholder  is the physical and (or) a legal entity who bought the share of the company at the time of its establishment or on the stock market or get it by other means in accordance with the law, for example, by inheritance, gift, court orders, etc. Shares give shareholders - the owners of the rights of a certain amount, which varies depending on what type of action has become a particular person who is a shareholder. Unconditional rule legitimized applicable regulations is as follows: each share of the company of one category and type provides shareholder - its owner the same rights. However, the cumulative list of the rights conferred on shareholders, large and diverse and can be classified by a number of attributes:

by type of normative document, which sets out the respective rights;

the degree of protection of rights;

depending on the nature of rights;

The nature of the rights themselves.

Depending on the order in which RF regulations committed shareholder rights are distinguished:

shareholders' rights enshrined in the law on the securities market;

shareholders' rights as defined by the Law on Joint Stock Companies Act and the privatization of state and municipal enterprises;

Shareholders' rights, established charter.

According to the Law on Securities Market share assigns to the owner (shareholder) of three types of rights arising from the economic essence of shares:

the right to receive part of the profits of the company in the form of dividends;

the right to participate in management;

Entitled to a portion of the property company on liquidation.

According to the law on joint stock companies the rights of shareholders, in addition to fixed in the Law on the securities market, include:

specification listed above shareholders' rights and describe features of the application of these rights according to the category and type of shares of the company, whose shares are owned by the shareholder;

the right to information about the activities of the company;

shareholders' rights arising under certain conditions, namely: a) for accumulation of certain shares, and b) related to the issuance or acquisition of the company of the shares, and c) when making decisions at the general meeting of the Company's reorganization of large transactions or Amendments to the Articles of Association.

The articles of association may contain certain rights of shareholders, as permitted by law, but not registered as required by law. Thus, the articles of association further elaborate on the rights of shareholders, but not all, but only a particular company.

The rights of shareholders, depending on their degree of protection

In the legal literature relating to public companies, shareholder rights division occurs, depending on the degree ...