Minority shareholders are shareholders with a non-controlling stake in the company. It refers to the shareholders with voting rights but the number of shares that they hold are insufficient to have a say in the company's affairs. In most cases, this refers to 50 per cent of the company's voting shares. Shareholders with voting rights [...]
Generally, a director can be remunerated in two ways, director's fees and salary. Director's fees Director's fees are paid to the director for directorial services rendered to the company. It is not required for a company to pay its directors any director's fees but if it does, this payment has to be approved in a [...]
The shares of a company represent ownership in a company. When a company is incorporated, the shareholders are the ones who own the company. The shareholders must also determine who owns how many shares. There are also different classes of shares with different rights. Shareholders are the ones who invest in the company and in [...]
Share capital represents the amount that the shareholders invest in a company. Share capital may be increased or reduced. If the shares are paid for then the shares are considered paid up. If shares are partially paid or have yet to be paid up then we classify this as unpaid share capital. The shareholders holding [...]
For certain reasons, a company may wish to remove a director. Some of the reasons may be: Poor performance Breach of duties to the company Negative limelight on the individual In a private company According to the Companies Act, the removal of a company director is through an ordinary shareholder's resolution. This is provided if [...]
Certain companies may decide to close down for a variety of reasons. These companies may have ceased business and the shareholders and directors may decide that they would like to close down the company. Some other reasons might include unprofitability of business, the retirement of key personnel and disagreements among key members in the company. [...]
Dividends are the distribution of a company's profits to its shareholders. The shareholders are the owners of the company and they subscribed to the shares of the company. Dividends can only be paid if the company has profits. Paying dividends when a company has no profits is illegal. If a director of a company approves the [...]
In Singapore, every company has to have at least one director. In some cases, a company can have more than one director and this is very common. Every company requires at least one of the director to be a resident director. A resident director is a director whose normal place of residence is in Singapore. [...]
Singapore is one of the most convenient places in the world to set up a company. If all the documentation is complete, a company can be set up in less than a day. Once a company is set up, the responsibility is placed on the directors to adhere to the constitution of the company and [...]
A charge is a form of a security interest that a company puts to a lender or creditor to secure repayment of a loan. There are fixed and floating charges. A fixed charge is a charge on secured assets. These may be charges on things like property, machinery, shares. A floating charge is a charge [...]