LW370
docx
keyboard_arrow_up
School
University of the South Pacific, Fiji *
*We aren’t endorsed by this school
Course
340
Subject
Law
Date
Nov 24, 2024
Type
docx
Pages
2
Uploaded by AmbassadorSeahorseMaster331
LW370: COMPANY AND PARTNERSHIP LAW
TUTORIAL
1. How are different types of shares classified? Explain what are Bearer shares and Share
Warrants.
Shares are divided into different categories based on the type of rights that are granted to their
owners. The typical understanding of shares is that they are essentially collections of rights. These
rights govern the degree of shareholder participation in the payment of dividends from corporate
profits, the right to vote at meetings, and other rights of this nature.
Shares known as "Bearer Shares" are those that can be held by anyone, regardless of who or what
company is listed as the owner. If someone has the share certificate, they are the sole owner of the
share; the share is not registered with any share registry.
A stock warrant is a derivative agreement between a public company and an investor that grants
the holder the right to purchase or sell shares of stock from or to the issuing public company at a
set price prior to a stated date.
2. Who are beneficial owners? Review and identify relevant provisions from the 12 USP
countries relating to beneficial owners.
A beneficial owner is a person who enjoys the benefits of ownership though the property's title is
in another name. In other words, they are the person who ultimately owns or controls the share
(s251 Fiji Companies Act 2015; s52 Cook Islands Companies Act 2017; s52 Kiribati Companies
Act 2021; s54 Vanuatu Companies Act 2012).
3. In the USP region can majority shareholders cancel or vary minority shareholder’s
rights without consultation with them?
A majority shareholder is a person or organization that holds and/or controls the majority of the
outstanding shares of a corporation. A person or operating entity with a majority stake in the
business has enormous power, especially if their shares have voting rights. Voting shares allow a
shareholder to cast a ballot on various corporate choices, such as who should sit on the board of
directors for the corporation. When a majority shareholder holds voting shares, the individual or
corporation may have tremendous influence over the course of the business.
4. Are public companies governed by the same rules as private companies when it comes to
dividends? State the relevant provisions.
A dividend is the distribution of corporate profits to eligible shareholders. Dividend payments
and amounts are determined by a company's board of directors. Each share in a class of shares in
a public company must have the same rights to dividends unless provided for in the company
constitution or by a special resolution. On the contrary, directors of private companies may pay
dividends to whoever they like, as they see fit.
Your preview ends here
Eager to read complete document? Join bartleby learn and gain access to the full version
- Access to all documents
- Unlimited textbook solutions
- 24/7 expert homework help