Practicing Success
Practicing Success
CUET Preparation Today
Why do shareholders contribute capital to a company? |
To directly manage the company's affairs To become real owners of the company To replace the Board of Directors To challenge the provisions of the Companies Act |
To become real owners of the company |
Shareholders contribute capital to a company primarily to become owners of the company. When individuals invest in a company by purchasing its shares, they acquire ownership stakes proportional to the number of shares they hold. Shareholders invest capital to gain ownership in the company. Their ownership is represented by the shares they hold, and they may participate in decision-making through voting rights associated with their shares. |
