Are Company Shareholders entitled to a share of company's assets?
Normal Situation
- Shareholders cannot directly claim company assets
- Shareholders can only receive company profits (dividends)
Reason:
- Company assets are used to maintain business operations
- If assets were distributed directly to shareholders, the company might not be able to operate normally
Special Situation
- If the company is dissolved or bankrupt:
- Company assets are sold to repay debts
- Any remaining assets after debt repayment are distributed to shareholders
Summary
- Shareholders normally only receive profits
- Only when the company is dissolved or bankrupt can shareholders potentially receive part of the company’s remaining assets
