Shareholder in a public limited company

Public limited companies are intended for companies with many shareholders, but there is no minimum requirement for the number of shareholders. The shares can be subscribed of or sold to an indefinite circle, the general public. This can be both natural and legal persons. Examples of legal persons are limited companies, other public limited companies and general partnerships.

All public limited companies must have a shareholder register that is registered in an approved central securities depository. Such a register should, among other things, contain an overview of all shareholders, their address and how many shares each individual owns. The shareholder register is to be updated at all times, and available to everyone.

Rights and obligations

The liability for the shareholders is limited, which means that you are not obliged to make higher contributions to the company than what follows from the share subscription.  As a shareholder you cannot be held liable for debts incurred by the company beyond what you have paid for the share. The creditors can only go to the company with their claims.

You are entitled to vote at the general meeting and receive dividends from the public limited company. You are also obliged to pay the share capital, and to act responsible in your role as a shareholder.

Agreements

The shareholders in a company can choose to enter into an agreement that regulates the relationship between them. There are no particular requirements as to the layout of this kind of agreement. Requirements for dividends or work effort can be examples that might be regulated in such an agreement.

It is also possible to make agreements between the company and the shareholder, but there are certain requirements that need to be followed. These requirements can be found in section 3-8 of the Public Limited Liability Companies Act.

Withdrawal from the company

If certain conditions are met, you may as a shareholder withdraw from the company or buy out other shareholders. These conditions are regulated by the Public Limited Liability Companies Act.