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FAQ
DEFINITION:
Shares are titles of ownership of a company and their possession confers rights on the company issuing these securities. If tomorrow, you decide to acquire shares in a company, you will acquire the status of partner/shareholder and as such be able to participate in the life of the company (attend General Meetings, respond to requests from the management team for a market study, etc.).
THE MAIN RIGHTS ATTACHED TO THE SHARES:
Being a shareholder generally implies having two prerogatives:
→ The right to vote. Exercised during the company's general meetings, the voting right attached to a share allows its holder to participate in the company's main decisions. The power of the shareholder is proportional to the number of shares he holds: one share generally corresponds to one vote.
→ The right to dividends. In the event that the accounts for the closed financial year reveal a distributable profit, shareholders can claim to receive a portion of it. This distribution is the responsibility of the ordinary annual general meeting and the terms and conditions are defined in the shareholders’ agreement.
REMUNERATION FOR SHARES :
In addition to the possibility of receiving dividends, the return on investment can be expressed by another means: the capital gain on sale.
At the end of the holding period, you will resell your shares acquired during fundraising to the project leader himself or to external investors (investment funds, large group, private investor, etc.). On this occasion, you can potentially benefit from a capital gain, the share having increased in value. The amount of the buyout was planned in advance based on the company's ability to generate sufficient cash flow. In the event that the project has not developed as well as expected, meeting clauses make it possible to find a compromise between the project leader and its shareholders (purchase by a third-party investor, postponement of the redemption, etc.).< /p>
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