Owning common stock doesn't just come with an equity stake in a public company. It also gives the shareholder certain rights—notably, the right to vote on corporate matters, such as electing board members, on corporate decisions and matters that directly affect their stock ownership (like 澳洲幸运5官方开奖结果体彩网:stock splits, 澳洲幸运5官方开奖结果体彩网:mergers, or acquisitions), 澳洲幸运5官方开奖结果体彩网:executive compensation packages, and other administrative issues.

How Voting Rights Work

澳洲幸运5官方开奖结果体彩网:Common stock ownership always carries 澳洲幸运5官方开奖结果体彩网:voting rights, but the nature of the rights and the specific issues shareholders are entitled to vote on can vary considerably from one company to 🍨another. Some companies grant stockholders one vote per share, giving shareholders with a greater investment in the company a greater say in corporate decision-making.

Shareholders can exercise their voting rights in person at the corporation's 澳洲幸运5官方开奖结果体彩网:annual general meeting (AGM) or other special meeting convened for voting purposes, or by proxy. Proxy forms are sent to shareholders along with their invitations to atten♋d the shareholders' meeting.

These forms list and describe all the issues on which shareholders have the right to vote. A shareholder may elect to fill out the form and mail in their votes on the issues rather than vo🍸ting in person. Shareholders can also enter their votes over the phone or on the internet.

How Voting Rights Influence a Company's Decisions 

Voting rights give shareholders a significant amount of influence over the success of the company and their investment. For instance, decisions made at the annual shareholders' meeting can end up leading a company's stock price to double or decline. Therefore, shareholders need to take advantage of the opportunity to positively influence corporate direction.

Shareholders should thoroughly analyze proposals being presented for a vote. For example, a company may need a poison pill to thwart a possible takeover. While this may benefit management, it may not be in the best interests of shareholders who could realize substantial 澳洲幸运5官方开奖结果体彩网:capital gains. Any proposed changes to the company✱'s bylaws should be carefullyꦅ scrutinized, as should company management proposals to change legal or accounting firms.

Proposed 澳洲幸运5官方开奖结果体彩网:stock options or split plans can significantly impact the value of existing shares, so such proposals merit careful evaluation by shareholders before voting. Another item for shareholder analysis is the company's Compensation Committee Report. 澳洲幸运5官方开奖结果体彩网:Investors should review the company's compensation plan to determine things such as the overall reasonableness of executive compensation packages and how effectively bonuses are tied to actual performance.

What Happens in a Hostile Takeover

Because shareholders 🎃have a proportional influence per their stake, certain market movers or hostile activist investors will amass a large stake in a company by purchasing shares. When they have enough shareholder power to sway a vote, they will step in and direct the compaღny in the direction that benefits them or they may purchase enough shares to become the majority shareholder of the company. When that happens, they can direct it more assertively.

The Bottom Line

Voting rights are generally granted to common shareholders of public companies. In most cases, one share equals one vote. These shareholders can vote on key issues like the election of a company's board, corporate policies, how the company operates, dividends, and whether any new securities will be issued. Votes are cast at annual shareholder meetings or by proxy if they can't attend.