What are the key rights and duties of investors?

What are the key rights and duties of investors?

Investors have rights such as receiving timely information, voting on major decisions, and participating in profits. Their duties include conducting due diligence and acting in the best interest of the company.

Can you explain the right to vote in more detail?

Certainly! The right to vote allows investors to influence company decisions, such as electing board members or approving mergers. This right is typically exercised during annual meetings.

What happens if an investor fails to fulfill their duties?

If an investor fails to fulfill their duties, they may face legal consequences, including potential loss of investment or being held liable for damages.

Are there any specific laws that protect investor rights?

Yes, various laws like the Securities Act and the Investment Company Act provide protections for investors, ensuring transparency and fairness in the market.