Banking and securities law

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  • Undivided shares: rules for exercising rights and impact on company management

    By Charlotte GAUCHON
    15 June 2025
    Holding shares in a company can take more complex forms than simple individual ownership. Joint ownership, which frequently arises as a result of inheritance or joint acquisition, is a perfect illustration. In this configuration, several people hold the same shares together, without their respective rights being materially divided. This situation, which is quite distinct from ownership dismemberment, is governed by specific rules that set out the rights and obligations of each undivided owner, known as co-dividers. Understanding this system is essential if you are to anticipate blockages and safeguard both your personal interests and the smooth running of the company. For an overview, our guide to managing and transferring shares in joint ownership offers an initial insight. Shareholder status of undivided co-owners The question of whether each co-owner can be considered a shareholder in his or her own right has long been the subject of debate. The...
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