Can you be a shareholder without receiving profits?

Question

This is going to sound like a stupid question, but I want to know the answer.

If I were a shareholder and I sign a contract stating I will not be eligible to receive any company profits then would that be the case? Would that stand up in court? Based on a UK business

Answer 1

It depends on the type of share you hold.

The profits are sometimes distributed to the shareholders as dividends.

Not all corporations pay dividends on their stocks. Berkeshire Hathaway never pays dividends, and never splits their stock, so it can grow. Instead, the shareholder sells the stock later for a higher price to make money.

I think you should examine your share certificate(s) and shareholder agreement carefully.