Professional Documents
Culture Documents
Meaning
Purchase stock within a corporation and are the legal owners of that corporations assets.
Receiving Information
Shareholders expect to receive accurate information regarding the corporations policies and particularly its financial situation. Receive information through annual shareholder meeting and annual and quarterly reports.
Board Elections
Shareholders elect board members who they believe will take good care of their investment. In most situations, elect board members who are screened by the sitting board members. If shareholders nominate potential directors, the board will screen it before being included on the ballot.
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Problems in Electing
Inadequate information about prospective directors. An inability to nominate candidates.
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Shareholder Meetings
Attended by the shareholders. To gain information and cast votes. Protect the investors investments. Shareholder meetings can also be unproductive, when not run effectively.
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Summary
Shareholders are the legal owners. A fundamental part of the corporate structure. Their position is unique. Do not hold legal or financial responsibility over the corporations actions or events. Limited avenues for monitoring corporate activity and being involved in the company decisions.
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