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N Cal Attorney
N Cal Attorney, Attorney
Category: Business Law
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Experience:  Since 1983
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Hi there please advise what are my legal entitlements of

Resolved Question:

Hi there please advise

what are my legal entitlements of being a shareholder 15%
Submitted: 7 years ago.
Category: Business Law
Expert:  N Cal Attorney replied 7 years ago.
-Could you explain your situation a little more?
Customer: replied 7 years ago.
I have been offered 15% shares in a new company and i am not sure what this entitles me too, Do i have a say in finances, operations etc. Also am i classified as a director or am i still an employee with benefits. I dont want to accept the offer until i am clear on where i stand legaly
Expert:  N Cal Attorney replied 7 years ago.
You would not automatically become a director or an officer, but as a shareholder you would gain the right to vote for directors, and would get a 15% share of any distributions to shareholders. It would make you a 15% owner of the company.
Customer: replied 7 years ago.
so essentially i have no real control over the business? If the company gets into financial trouble, am i responsible for 15% of any debts?
Expert:  N Cal Attorney replied 7 years ago.
No, in general shareholders are shielded from personal liability for claims against the corporation.

In general a shareholder cannot lose more than he paid for the shares even if the company goes bankrupt.

If you tell me what town you are in I can look for a local attorney who could give you advice more specific to your situation. Some corporations have different classes of shares. It would be a good idea to have a local attorney discuss this with you before you agree to become a shareholder.
Customer: replied 7 years ago.

I stay in boksburg Gauteng province in South africa. thanks that would be great.


I am not paying for the shares, i will be running the division in return for shares

Expert:  N Cal Attorney replied 7 years ago. lists corporate law firms in SA by City:

Cape Town

Boksburg is not listed and I don't know what the nearest larger city is, but you should be able to find someone on that list within a reasonable distance.
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