Share(s), Share Capital and Shareholders: Rights and Obligations

Corporate entities inter alia require what is known as share capital to operate and achieve the objective of their shareholders as the case may be. This short paper discusses the concept of share capital, shares as it relates to shareholders, shareholders rights and obligations and the procedure for the transfer of shares. In this short paper, insight would be taken from Rwandan company law/legislation as well as directives from the registrar of companies in Rwanda and other sources as would be indicated progressively. The share capital of a company is a portion of a company’s capital or assets, which is contributed by its shareholders and used in running the activities of the company. A company’s assets cannot by an affirmative action go below its share capital, which represents the minimum risk capital contributed by its shareholders as a guarantee in relation to creditors of the company and in the other hand determines the value of shareholders equity in the company.