Holder of Rights Not Deemed a Shareholder Clause Samples
The 'Holder of Rights Not Deemed a Shareholder' clause establishes that individuals or entities who possess certain rights related to company shares—such as options, warrants, or convertible securities—are not considered shareholders until those rights are exercised and actual shares are issued. For example, someone holding a stock option does not have voting rights, dividend entitlements, or other privileges reserved for shareholders until they convert their option into shares. This clause clarifies the distinction between potential and actual shareholders, preventing confusion over rights and obligations and ensuring that only those who hold issued shares are treated as shareholders under the company's governing documents.
Holder of Rights Not Deemed a Shareholder. No holder, as such, of any Rights shall be entitled to vote, receive dividends or be deemed for any purpose the holder of shares or any other securities which may at any time be issuable on the exercise of such Rights, nor shall anything contained herein or in any Rights Certificate be construed to confer upon the holder of any Rights, as such, any of the rights of a shareholder of the Company or any right to vote for the election of directors or upon any matter submitted to shareholders at any meeting thereof, or to give or withhold consent to any corporate action, or to receive notice of meetings or other actions affecting shareholders (except as provided in Section 5.8 hereof), or to receive dividends or subscription rights, or otherwise, until such Rights shall have been exercised or exchanged in accordance with the provisions hereof.
Holder of Rights Not Deemed a Shareholder. No holder, as such, of any Rights or Rights Certificate shall be entitled to vote, receive dividends or be deemed for any purpose whatsoever the holder of any Common Share or any other share or security of the Company which may at any time be issuable on the exercise of such Rights, nor shall anything contained herein or in any Rights Certificate be construed or deemed or confer upon the holder of any Right or Rights Certificate, as such, any right, title, benefit or privilege of a holder of Common Shares or any other shares or securities of the Company or any right to vote at any meeting of shareholders of the Company whether for the election of directors or otherwise or upon any matter submitted to holders of Common Shares or any other shares of the Company at any meeting thereof, or to give or withhold consent to any action of the Company, or to receive notice of any meeting or other action affecting any holder of Common Shares or any other shares of the Company except as expressly provided herein, or to receive dividends, distributions or subscription rights, or otherwise, until the Right or Rights evidenced by Rights Certificates shall have been duly exercised in accordance with the terms and provisions hereof.
Holder of Rights Not Deemed a Shareholder. No holder, as such, of any Right or Rights Certificate shall be entitled to vote, receive dividends or be deemed for any purpose the holder of Common Shares or any other securities which may at any time be issuable on the exercise of such Right, nor shall anything contained herein or in any Rights Certificate be construed to confer upon the holder of any Right or Right Certificate, as such, any of the rights, titles, benefits or privileges of a shareholder of the Corporation or any right to vote at any meeting of shareholders of the Corporation whether for the election of directors or otherwise or upon any matter submitted to shareholders of the Corporation at any meeting thereof, or to give or withhold consent to any action of the Corporation, or to receive notice of meetings or other actions affecting any shareholder of the Corporation (except as provided in Section 5.8 hereof), or to receive dividends or subscription rights, or otherwise, until the Right or Rights evidenced by any Rights Certificate shall have been exercised in accordance with the provisions hereof.