Rights of Common Shareholders

Question 1

Common shareholder rights

Answer 1

Limited liability - losses limited to money invested
Preemptive rights - proportional ownership if new shares issued
Right to:
- Inspect books (must get annual financial report)
- Transfer ownership
- Corporate distributions - receive dividends if declared
- Corporate assets on dissolution (paid after all other claims paid)
Vote
- Vote (one vote per share) including voting for the board of directors

Question 2

Items that dont require shareholder vote

Answer 2

Declare cash dividend
Declare stock dividend
Declare preemptive rights distribution

i.e. anything that is of benefit to the shareholder (reveiving money, shares, rights)

Question 3

Types of voting

Answer 3

Statutory - a number of votes per each voting item (most common)
Cumulative - can combine all your votes to vote on one voting item