Only Holding 1 Lot of Shares Entitles Investors to These Rights!

Shares represent ownership in a company. In other words, investing in stocks means owning a portion of that company. As a shareholder, an investor can enjoy the company’s upward trajectory when it performs well and its share price rises on the market.

As an “owner” of the company, even with just one lot of shares, an investor is entitled to participate in various corporate actions. Let’s explore some rights you should know to become a more informed shareholder!

Dividend Distribution

Well‑known and eagerly awaited by shareholders, dividends serve as a source of passive income—especially for long‑term investors. This portion of the company’s profits is distributed to investors via their personal or fund accounts, proportional to the number of shares they hold.

The per‑share dividend amount is determined at the General Meeting of Shareholders (GMS) based on net profits earned over a specified period. In addition to cash dividends, companies may also issue bonus shares, which affect capital structure rather than cash flow.

Participation in the GMS

The General Meeting of Shareholders is held annually (Annual GMS) or when urgent matters arise (Extraordinary GMS). Investors are invited by email, and meetings can take place on‑site or online via the KSEI platform.

Beyond approving dividend amounts, the GMS aims to ratify the company’s annual report, evaluate performance, facilitate Q&A sessions, and make strategic decisions. Thus, every participant has voting rights whenever a resolution is put to a vote.

Pre‑emptive Rights / Rights Issue

Pre‑emptive Rights is a right in the form of securities that grant existing shareholders the right to subscribe to newly issued shares by the issuer. Also known as a Rights Issue, Pre‑emptive Rights use same ticker as the parent stock with an “‑R” suffix.

Investors may choose to sell their Pre‑emptive Rights on the secondary market or convert them into ordinary shares at an exercise price below market value. Conversely, if rights are neither sold nor exercised by the expiration date, they lapse and may be reallocated to other investors.

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Disclaimer: The content is made for educational purposes, not a recommendation to buy or sell a particular stock. PT KAF Sekuritas Indonesia is licensed and supervised by the Financial Services Authority (OJK).