3.2.1 Shareholder Rights
Shareholder Rights
Shareholders are the owners of the company, and they have certain rights that allow them to influence the company's governance. Key shareholder rights include:
Voting Rights: Shareholders typically have the right to vote on major corporate decisions, such as the election of board members, mergers and acquisitions, and significant changes to the company's articles of incorporation.
Dividends: Shareholders have the right to receive dividends, if declared, based on the company's profitability. Dividends are a return on their investment and a key aspect of shareholder value.
Access to Information: Shareholders have the right to receive timely and accurate information about the company's financial performance and strategic direction. This includes access to annual reports, financial statements, and other disclosures.
Participation in Meetings: Shareholders have the right to attend and participate in general meetings, where they can ask questions, voice concerns, and provide input on company policies and decisions.
Transfer of Shares: Shareholders can freely transfer their shares in the open market, providing liquidity and flexibility in their investment.