Shareholder Rights

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The legal and economic rights of shareholders, including voting rights, dividend payments, and the ability to sell shares.

Shareholder rights: The rights, powers, and privileges granted to shareholders by corporate law and governing documents.
Corporate governance: The framework of rules, practices, and processes by which a company is directed and controlled.
Board of directors: The group of individuals elected by shareholders to oversee the management and strategic direction of the company.
Proxy voting: The process of voting on corporate matters by proxy through a designated representative.
Majority voting: A system in which company directors are elected by a majority of shareholders rather than a plurality.
Shareholder activism: The use of shareholder rights to effect change in a company's management, policies, or practices.
Shareholder meetings: Meetings where shareholders are provided with updates on a company's performance and given the opportunity to vote on important decisions.
Shareholder resolutions: Proposals submitted by shareholders for consideration at a company's annual meeting.
Corporate social responsibility: The responsibility of corporations to operate in a manner that considers the impact on society, the environment, and other stakeholders.
Executive compensation: The compensation awarded to top executives, including salaries, bonuses, stock options, and other incentives.
Whistleblower protection: Protections for employees who report illegal or unethical behavior within a company.
Corporate ethics: The moral principles and values that guide the behavior of a corporation.
Shareholder activism campaigns: Examples of shareholder campaigns engaging with corporations across the globe on a variety of issues.
Insider trading: The use of non-public information to trade securities.
Fiduciary duties: The legal obligation of directors and officers to act in good faith and in the best interests of the company and its shareholders.
Voting rights: This is one of the most basic rights of shareholders in which they have a say in major decisions made by the company.
Dividend rights: Shareholders have the right to receive dividends from the company's profits based on the number of shares they hold.
Preemptive rights: This right allows shareholders to have the first right to purchase additional shares before they are made available to the public.
Right to information: Shareholders have the right to be informed about the company's financial status, major decisions, and any other relevant information related to their investment.
Right to sue the company: Shareholders have the right to take legal action against the company if they feel that their rights are violated or if the company is not acting in their best interest.
Right to inspect company records: Shareholders have the right to inspect the company's records and documents to verify its financial statements and other information.
Right to call shareholders meetings: Shareholders have the right to request a meeting with the company's board of directors or other shareholders to discuss the company's performance.
Right to remove and appoint directors: Shareholders have the right to remove directors from their positions or appoint new directors if they feel that the current board is not acting in the best interest of the company.
Right to approve major corporate actions: Shareholders have the right to approve significant corporate actions such as mergers, acquisitions, or liquidation.
Right to propose resolutions: Shareholders have the right to propose resolutions to the company's board of directors or other shareholders for consideration and a vote.
- "A shareholder (in the United States often referred to as stockholder) of corporate stock refers to an individual or legal entity... that is registered by the corporation as the legal owner of shares of the share capital of a public or private corporation."
- "A person or legal entity becomes a shareholder in a corporation when their name and other details are entered in the corporation's register of shareholders or members..."
- "A corporation generally cannot own shares of itself."
- "They [shareholders] are generally not liable for the corporation's debts, and the shareholders' liability for company debts is said to be limited to the unpaid share price unless a shareholder has offered guarantees."
- "The board of directors of a corporation generally governs a corporation for the benefit of shareholders."
- "Shareholders may have acquired their shares in the primary market by subscribing to the IPOs and thus provided capital to the corporation. However, most shareholders acquire shares in the secondary market and provided no capital directly to the corporation."
- "The corporation is not required to record the beneficial ownership of a shareholding, only the owner as recorded on the register."
- "Shareholders may be referred to as members of a corporation."
- "Shareholders are considered by some to be a subset of stakeholders, which may include anyone who has a direct or indirect interest in the business entity."
- "unless required by law the corporation is not required or permitted to enquire as to the beneficial ownership of the shares."
- "The influence of shareholders on the business is determined by the shareholding percentage owned."
- "When more than one person is on the record as owners of a shareholding, the first one on the record is taken to control the shareholding, and all correspondence and communication by the company will be with that person."
- "Shareholders may be granted special privileges depending on a share class."
- "However, most shareholders acquire shares in the secondary market and provided no capital directly to the corporation."
- "Shareholders of corporations are legally separate from the corporation itself."
- "...anyone who has a direct or indirect interest in the business entity."
- "...the shareholders' liability for company debts is said to be limited to the unpaid share price unless a shareholder has offered guarantees."
- "For example, employees, suppliers, customers, the community, etc., are typically considered stakeholders because they contribute value or are impacted by the corporation."
- "A person or legal entity becomes a shareholder in a corporation when their name and other details are entered in the corporation's register of shareholders or members..."
- "The board of directors of a corporation generally governs a corporation for the benefit of shareholders."