claims of stock holders
DESCRIPTION
TRANSCRIPT
Claims of Stockholder
A stockholder is an individual or company (including a corporation) that legally owns one or more shares of stock in a joint stock company.
A company's shareholders collectively own that company.
The goal of such companies is to enhance shareholder value.
Stockholder
Difference A stockholder or
shareholder is the holder or owner of stock in a corporation
A stakeholder is anyone that has an interest or is affected by a corporation. It includes the employees, the employees’ families, suppliers, customers, community, and others.
Secured creditors: Often banks, holding collateral such as a
mortgage, are paid first.
Unsecured creditors: Such as banks, suppliers and bondholders,
have next claim on assets.
Stockholders: Have last claim. May not receive anything if
secured and unsecured claims aren’t fully paid.
Claims - Hierarchy
Reasons Companies Fail
Neglect 3.9% Fraud 3.8% Disaster 6.3% Insufficient Profits 11.6% Industry and competition 22.3% Inadequate Sales 2.2% Excessive operating Expenses 40.5% Too much debt 3.6% Insufficient Capital 3.2% Accounts receivable .8% All others 1.8%
The right to vote on matters such as elections to the board of directors. Usually, stockholders have one vote per share owned.
The right to receive stock certificates as evidence of ownership.
The right to receive any declared dividends, and to sell the stock.
The right to information and to receive financial reports about the company.
Rights
The right to propose shareholder resolutions.
The right to share in distributions of the company's income.
The right to purchase new shares issued by the company.
The right to a company's assets during, a liquidation of the company
Rights
Statutory voting : It allows using all votes for each of the
vacancies for the board of directors
Cumulative voting : It increases the number of votes that
a stockholder can use for a particular candidate
If a stockholder cannot attend a meeting to vote, then he can cast his vote by proxy through the mail, or having someone else at the meeting to cast his vote.
Voting Privileges
In addition to the reports that a shareholder receives,
Which includes an audited financial statements every year
He also has the right to the minutes of the meetings of the board of directors
Right to Information
It is the right of existing stockholders to purchase new issues of the company stock before it is offered to the public, so that existing stockholders can maintain proportionate ownership of the company
Pre-emptive Rights
It shows how many shares the stockholder can buy and at what price.
For example, if shareholder x owns 10% of the company, and the company issues 1,00,000 new shares of stock, then the company will allow x to buy at least 10,000 shares of stock before the stock is presented to the public
Subscription Rights
A corporation does not have to distribute profits to shareholders in the form of dividends, and indeed, many growth companies re-invest profits for greater growth rather than distribute them to shareholders
Rights to Dividends
It is the stock that had been issued by the company, but was bought back by the company. Treasury stock has no voting rights, It does not receive dividends, It is not used in the computation of earnings per share It is no longer outstanding stock.
Treasury Stock Rights
If a company liquidates, common stockholders have a claim to the residue—what is left after all creditors and all preferred stockholders have been paid. In most cases of liquidation, the common shareholder gets nothing.
Residual Claim
CASE STUDY
Founded 1903
Founder's William S. HarleyArthur DavidsonWalter DavidsonWilliam A. Davidson
Headquarters United States
Products Motorcycles
Employees 9,700
Net income ▲ US$ 655 Million
Harley-Davidson's association with sport bike manufacturer Buell Motorcycle Company in 1987.
When they supplied Buell with fifty surplus XR1000 engines.
Buell continued to buy engines from HD until 1993,
HD bought 49% of the Buell Motorcycle Company
Then they increased its share in Buell to 98% in 1998, and to complete ownership in 2003.
Then the company issued an official statement that it would be discontinuing the Buell line
During its period, HD embarked on a program of expanding the number of dealerships throughout the country.
Retiring CEO Jeffrey Bleustein profited $42 million on the exercise.
HD was named as a defendant in numerous class action suits filed by investors who claimed they were intentionally defrauded by HD's management and directors.
When it gets noticed ,About 2,700 employees & Stock holders at Harley-Davidson Inc.'s largest manufacturing plant in New York went on strike resulted in claiming of liquidations.
During the period of the strike, the company refused to pay for any portion of the striking employees' and stockholders
At last 440 employees were laid off, and many Harley suppliers also laid off workers because of the strike.
In August 2009, Harley-Davidson announced plans to enter the market in India, it expects to start selling its motorcycles in 2010.
The company has established a subsidiary to be located in Gurgaon, near Delhi, and has begun the process of seeking dealers.
Entering to the Indian market have been delayed for several years, due to high tariffs and emissions regulations. The pollution regulations have recently changed, but the tariff problem is yet unresolved.
Steps toward export to India
References
Cycle III: Action Business Journalism - American Press Institute
www.wikipedia.org
www.osun.org
www.theamlawdaily.com
www.nasdaq.com
www.adobesearch.com
www.online.wsj.com
www.thismatter.com
With regards
M.Ravishankar
MBA (AB)
Nift-tea Knitwear Fashion Institute
Tirupur.
2008-2010 batch
tan Q