All investors must be fully aware of their basic legal rights as articulated in existing laws, rules, and regulations issued by the government entities and the Exchange.
The Philippine Stock Exchange (PSE) has been promoting shareholder activism to encourage shareholders to exercise their rights connected with their investment transactions. Outline below is a summary of such rights. It covers the different phases of investment and includes pre-investment phase up to termination of the investment.
It is important to note that the rights presented in this section are simply a collation from relevant legal issuances. The basis for any liability in connection with investment transactions shall still be the specific law, rule, and regulation.
1. RIGHT TO FAIR AND EQUAL TREATMENT
Every investor should be given fair and equal treatment in terms of opportunities in terms of opportunities offers and access to information.
2. RIGHT TO FULL, ACCURATE, AND TIMELY INFORMATION
Every investor should be given complete, accurate and timely information to allow them to make informed decisions about their investments.
3. RIGHT TO VOTE AND EXERCISE RELATED RIGHTS
Every investor should be given the right to participate in the management of the business by voting on important decisions such as who should be the directors and what major activities the business should undertake.
4. RIGHT TO HAVE FULL ACCESS TO FUNDS IN THE ACCOUNT
Every investor should be allowed to exercise rights of absolute ownership over his account and may be subjected to limitations only with express consent.
5. RIGHT TO EXPECT THE BOARD, MANAGEMENT, BROKERS, AND AGENTS TO PERFORM THEIR FUNCTIONS RESPONSIBLY
Every investor can expect the Board, management, brokers and agents to perform their duties and responsibilities in accordance with a corporate culture of integrity, honesty and compliance with the spirit as well as the letter of the law.
6. RIGHT TO RELY ON THE COMPLETENESS, ACCURACY, AND TRUTHFULNESS OF ACCOUNTING AND FINANCIAL STATEMENTS
Every investor should be able to rely on completeness, accuracy, reliability, relevance, and timeliness of accounting and financial statements as certified by independent auditors.
7. RIGHT OF RECOURSE IN CASE OF DISPUTES CONCERNING THE ACCOUNT
Every investor has the right to know that in case a problem arises concerning his/her account, he/she has access to officers, managers, and agents of brokerage firms and receive prompt attention.
8. RIGHT TO FAIR SECURITIES MARKETS WHERE TRADES ARE EXECUTED AT THE BEST POSSIBLE PRICE
Every investor should be able to rely that stocks traded in the stock exchange is reflective of how the market values the company.
9. RIGHT TO EXPECT THAT THE REGULATORY BODIES ARE EXERCISING SUPERVISION OVER THE INDUSTRY
Every investor should be able to rely on these institutions, their functions and duties under the law in ensuring that the market operates in an orderly, efficient, and transparent manner and that investors are adequately protected.
10. RIGHT TO KNOW DIVIDEND POLICY, TO RECEIVE DIVIDENDS, AND TO ENJOY OTHER BENEFITS DUE TO STOCKHOLDERS
Every investor should have a share of the profits of the company and enjoy other benefits as part-owner of the company.
Source:
PSEAcademy
Photo credit:
flickrCC
It's better to know your rights as investor. These are just but summary of the rights given to every investor in the stock market to a particular company you invested in. Just take a look at it but don't get overwhelmed by it. You may get it too complicated but it's just simple as it would be in the actual practice.
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