Shareholders decides who sits on the board of directors of a corporation
Shareholders and board of directors
A shareholder, also referred to as a stockholder, is a person, company, or institution that owns at least one share of a company's stock, known as equity. Because shareholders essentially own the company, they reap the benefits of a business's success. These rewards come in the form of increased stock valuations or financial profits distributed as dividends.
Roles of a Shareholder
1. Brainstorming and deciding the powers they will bestow upon the company’s directors, including appointing and removing them from office
2. Making decisions on instances the directors have no power over, including making changes to the company’s constitution
3. Checking and making approvals of the financial statements of the company
Types of Shareholders
Common shareholders are those that own a company’s common stock. They are the more prevalent type of stockholders and they have the right to vote on matters concerning the company.
Preferred shareholders are more rare. Unlike common shareholders, they own a share of the company’s preferred stock and have no voting rights or any say in the way the company is managed. Instead, they are entitled to a fixed amount of annual dividend, which they will receive before the common shareholders are paid their part.
For more information refer to
https://brainly.com/question/20140735
#SPJ2
