Oecd legal Instruments


II.A.  Basic shareholder rights should include the right to: 1) secure methods of ownership


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OECD principles

II.A. 
Basic shareholder rights should include the right to: 1) secure methods of ownership 
registration; 2) convey or transfer shares; 3) obtain relevant and material information on the 
corporation on a timely and regular basis; 4) participate and vote in general shareholder meetings; 
5) elect and remove members of the board; 6) share in the profits of the corporation; and 7) elect, 
appoint or approve the external auditor. 
II.B. 
Shareholders should be sufficiently informed about, and have the right to approve or 
participate in decisions concerning fundamental corporate changes such as: 1) amendments to the 
statutes, articles of incorporation or similar governing documents of the company; 2) the 
authorisation of additional shares; and 3) extraordinary transactions, including the transfer of 
corporate assets that in effect result in the sale of the company. 
The ability of companies to form partnerships and related companies, and to transfer operational assets, 
cash flow rights and other rights and obligations to them, is important for business flexibility and for delegating 
authority in complex organisations. It also allows a company to divest itself of operational assets and to 
become only a holding company. However, without appropriate checks and balances, such possibilities may 
also be abused. 
OECD/LEGAL/0413
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II.C. 
Shareholders should have the opportunity to participate effectively and vote in general 
shareholder meetings, and should be informed of the rules, including voting procedures, that govern 
general shareholder meetings. 
II.C.1. 

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