The ordinary shareholders enjoy the following rights except the right to?

Assessment: JAMB UTME - Principles of Accounts - 1998 Subject: Financial Accounting

Question 1 Report

The ordinary shareholders enjoy the following rights except the right to?
Answer Details
The ordinary shareholders of a company have various rights, including the right to vote at annual general meetings, elect the board of directors, and participate in additional issues of shares. One of the most important rights is to receive dividends at a predetermined rate. However, the right that they do not enjoy is the right to determine their own level of dividends or to force the company to pay dividends if it does not want to. This is the prerogative of the board of directors, who may decide to retain earnings for future growth or other purposes. Therefore, the answer is: determine their own level of dividends or to force the company to pay dividends if it does not want to.

Download The App On Google Playstore

Everything you need to excel in your exams

Green Bridge CBT Mobile App
Personalized AI Learning Chat Assistant
200,000+ Exam Questions Across IGCSE, JAMB, WAEC & NECO
Over 3,900 Lesson Notes
Offline Support - Learn Anytime, Anywhere
Green Bridge Timetable
Literature Summaries & Potential Questions
Track Your Performance & Progress
In-depth Explanations for Comprehensive Learning