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Shareholders information: A tale of agreement and administration

Shareholders information: A tale of agreement and administration

Wednesday 15, 01 2020
Shareholders always play an important role in any joint-stock company, as they indirectly own the business through its stock. Due to their significance, the information of them has a great support for analytic purpose. A quick glance at shareholders

Shareholders always play an important role in any joint-stock company, as they indirectly own the business through its stock. Due to their significance, the information of them has a great support for analytic purpose. A quick glance at shareholders information gives us more than we can imagine because many basic parts can be revealed such as Business ID, Establishment, Address, Percentage.

The basic knowledge of shareholders

According to Wikipedia, a shareholder can be an individual or institution (including a corporation) that legally owns one or more shares of stock in a public or private corporation. Shareholders may be referred to as members of a corporation. Legally, a person is not a shareholder in a corporation until his or her name and other details are entered in the corporation’s register of shareholders or members. A beneficial shareholder is a person that has the economic benefit of ownership of the shares, while a nominee shareholder is a person who is on the corporation’s register as the owner while being, in fact, acting for the benefit and at the direction of the beneficiary, whether disclosed or not. The corporation is not required to record the beneficial ownership of a shareholding, only the owner as recorded on the register. When more than one person is on the record as owners of a shareholding, the first one on the record is taken to have control of the shareholding, and all correspondence by the company will be with that person.  Shareholders of a corporation are legally separate from the corporation itself. They are generally not liable for the debts of the corporation; and the shareholders' liability for company debts are said to be limited to the unpaid share price, unless if a shareholder has offered guarantees.

Shareholders information: A tale of agreement and administration

Shareholders’ information in a VietnamCredit comprehensive company report

However, beyond all these ideas that we mentioned above, this article will deliver you something more interesting. As a part of VietnamCredit comprehensive company reports, you may learn what it supposes to tell you in detailed:

Business ID: The Business ID (Business Identity Code) is a code given to businesses and organizations by the Tax Administration. It consists of 5 digits, two dashes, and two control marks, for example, 123-45-67899. The Business ID identifies the business. However, it is not possible to conclude from an ID whether a business has been registered with the Tax Administration registers or the Trade Register. If you need that information, you must check it at the company report, or Tax Administration.

Establishment: this information provides the date that the business legally registered. Normally many joint-stock companies have their shareholders who are actually another corporation so it is convenient to give this information here.

Address: Address is the particulars of the place where someone lives or an organization is situated. In VietnamCredit comprehensive company reports, this information is referred to as the physical location where the shareholders live (or situated if shareholders are corporations.)

Percentage: The percentage that we mention in this article has a close connection to the stock. The stock (also known as capital stock) of a corporation is constituted of the equity stock of its owners. A single share of the stock represents fractional ownership of the corporation in proportion to the total number of shares. In liquidation, the stock represents the residual assets of the company that would be due to stockholders after discharge of all senior claims such as secured and unsecured debt. Shareholders' equity cannot be withdrawn from the company in a way that is intended to be detrimental to the company's creditors.

Shareholders information: a tale of agreement and administration
Shareholders may be granted special privileges depending on a share class. The board of directors of a corporation generally governs a corporation for the benefit of shareholders. Therefore, the only one thing that can connect all the shareholders in a company is the agreement among them. Subject to the applicable laws, the rules of the corporation and any shareholders’ agreement, shareholders may have the right:


  • to sell their shares.

  • to vote on the directors nominated by the board of directors.

  • to nominate directors (although this is very difficult in practice because of minority protections) and propose shareholder resolutions.

  • to vote on mergers and changes to the corporate charter.

  • to dividends, if they are declared.

  • to access certain information; for publicly-traded companies, this information

  • is normally publicly available.

  • to sue the company for violation of fiduciary duty.

  • to purchase new shares issued by the company.

  • to what assets remain after a liquidation.

This agreement can be signed by all members at (or sometimes after) the registered date to set out the terms of capital and profits. By contributing their money and assets, shareholders illustrate their right, power, and responsibility in the group through their percentages of stock. As a result, the administration must follow that percentage, for example, the one who has the highest percentage of the stock has the highest power.

In fact, Shareholders are considered by some to be a subset of stakeholders, which may include anyone who has a direct or indirect interest in the business entity. For example, employees, suppliers, customers, the community, are typically considered stakeholders because they contribute value and/or are impacted by the corporation. So make sure you sign the agreement, you will have the right of administration in the company, no matter who you are.


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