What Are Stockholder Voting Rights?

Business & Management
#1

A shareholder’s voting right is the right to vote on matters of corporate policy, such as the composition of the board of directors, the issuance of new securities, the initiating of corporate actions such as mergers or acquisitions, approving dividends, and making significant changes in the corporation’s operations. It is customary for shareholders to vote via proxy and mail in their response or by relinquishing their vote to a third-party proxy voter.
Unlike the single vote right that most people have in democratic governments, a shareholder’s number of votes is proportional to the number of shares they own. As a result, someone who owns more than 50% of a business’s shares has a controlling stake in the company and can vote with a majority of the votes.

#2

It depends on the class of stock you hold. Many companies issue multiple classes of stock to maintain power by the co-founders or executive leadership. In most Class A and Class B situations, one class may have superior voting rights over another class. Then there is a distinction between preferred shares and common shares.

So the question can be answered by saying that your voting rights depend on the nature of your investment and if voting rights shares are available.