Series 79: Rights Of Common Stockholders

Rights of Common Stockholders

Holders of common stock are entitled to certain rights. The precise contours of these rights depend on the laws of the state in which the company is incorporated and on the corporation’s bylaws and other governance documents. The following are the rights typically available to common shareholders:

• • Voting rights. Common shareholders generally have the right to vote for corporate directors and to vote on corporate resolutions. Shareholders may vote in person at annual meetings and at any special meetings called by the board of directors. Alternatively, a shareholder may cast a vote by proxy, through a person authorized to vote on behalf of the shareholder. Shareholders are usually entitled to one vote per share. Some companies have multiple classes of stock with different voting rights.
• • Right to inspect corporate records. Shareholders usually have the right to inspect the company’s corporate records, including books and financial records and meeting minutes. The exact scope of this right varies from state to state.
• • Dividends. Holders of common stock are not entitled to a