(a) Outline three distinguished features of public and private companies.
(b) State three rights available to an ordinary shareholder.
Explanation
(b) Rights of the Ordinary Shareholder
- The right to vote at shareholders meeting
- A right to a share in the profits earned by the company
- A right to a share in the surplus arising out of liquidation of the company
- A right to transfer ownership of shares/right to sell shares
- A right to receive a copy of the annual report
- A right to attend Annual General Meeting of the company
- A right to appoint a proxy to vote on one’s behalf.