ABSTRACT
As we saw in Chapter 10 (Introduction), owning a share in the share capital of a company does not give a member any rights to defined or specific property owned by the company. All that it does is to give a shareholder a general claim against the company.1 A share is a chose in action, i.e., “personal property,”2 which confers rights and obligations on the shareholder. Shares entitle the holder to certain rights in the company, such as the right to be paid dividends (a distribution), to attend meetings, to vote on issues affecting the company, and a right to share in any surplus when the company is liquidated, that is, when it is wound up.3 These rights and duties arise from the underlying law, the company’s constitution, and the Companies Act 1997.
