General rights of shareholders

For a Hong Kong Limited company (limited by share), as a shareholder, you will have below general rights:

• The right to vote at the shareholders’ general meeting (GM) and Annual General Meeting (AGM).
• The right to receive dividends declared by the company Board of Directors.
• The right to receive an auditor’s report of the company for each financial year.
• The right to receive a distribution in a liquidation after all higher priority parties such as creditor, and employee.

A member has the right to inspect the register of directors, members, company secretaries and charges, resolution or minutes of meetings held by shareholders. (Companies Ordinance s. 631, 642, 649 )

Directors must ensure that every shareholder of the company is entitled to receive notice about the time, place and purpose of a general meeting.
(Companies Ordinance s.574(1) )

Members holding at least 2.5% of the voting rights of all members who are entitled to vote at a company’s general meeting or at least 5 members of the company may apply to court to make an order to authorize a person to inspect any record or document of the company.
(Companies Ordinance s. 740 )

Any notice period of an EGM that is shorter than the statutory provisions must be agreed by not less than 95% of all the members who are entitled to vote at the general meeting.
(Companies Ordinance s.571(3) )

Where the company does not have any director or does not have sufficient directors capable of acting to form a quorum, any two or more members representing at least 10% of the total voting rights are entitled to call a general meeting.
(Companies Ordinance s.569 )

On an application by at least 100 members or members holding at least 10% of the shares issued, the Financial Secretary may also appoint a person to investigate a company’s affairs.
(Companies Ordinance s.840 )

A company may, by special resolution (75% of the votes of shareholders attending and voting), appoint a person to investigate its affairs.
(Companies Ordinance s.892 )