A share is a participation in the share capital of a company entitling the holder to distributions of profits and voting rights in the enterprise.

A share represents an ownership interest in a legal entity such as an NV or BV. It confers on the shareholder an entitlement to dividends and voting rights at the general meeting, while also limiting the extent of the shareholder’s liability to the nominal value.

In practice, shares play a central role in capital increases, mergers, acquisitions and shareholder disputes. Lawyers routinely assess the validity of the issue, transfer or pledge of shares by reference to the articles of association and applicable law.

“The company has resolved to issue new shares in order to finance the acquisition of a competitor.”

Need legal advice?

Schedule a free consultation with one of our specialists