Shareholder Voting Rights

Very Easy Corporate Governance Shareholder Rights

In a typical corporate governance structure, shareholders have certain rights that enable them to influence the management and operations of a company. One of the fundamental rights afforded to shareholders is the ability to vote on key corporate decisions. This voting power is usually exercised at annual general meetings (AGMs) or special meetings.

Which of the following statements best describes a key right of shareholders?

Shareholders have the right to receive dividends only if approved by the board.

Shareholders can vote on significant corporate matters such as mergers and acquisitions.

Shareholders are entitled to appoint the company’s auditors at their discretion.

Hint

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