RIGHTS OF INVESTORS.

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Ans.    Technically speaking, with respect to joint stock company, the term ‘investor’ include those person who invest finance in a company by means of purchasing its debentures or bonds or participating in its public deposits scheme. Typically invested are interested earning high returns on their investment and not frightened to take risks. This is because, often they are interested in making short term gains, out of their investment.

To safeguard their interest, the companies act as well as their articles of a company has recognized the following rights :

1.      To appoint nominee directors

2.      To get payment to their investment along with regular returns on their investment as per the stated terms and conditions.

3.      To file suit case against the company like register of debenture holders, register of charges, etc.

4.      To approach High Court for an order to wind up the company.

 

 

 

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