ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -To protect their long-term economic interests, shareholders have a responsibility to monitor the conduct of the board of directors and exercise their voting rights by casting thoughtful and informed votes that safe-guard their financial and other interests.

Detailed explanation-2: -Shareholders own either voting or non-voting stock, and that determines whether they can weight in on big picture issues the company is considering. Someone with voting stock has the right, but not the obligation, to vote on the company’s board of directors or other business matters.

Detailed explanation-3: -Shareholders can have a direct influence on a business through their voting rights on company decisions. Thus, they can exercise some control over the company, and the more shares they have, the more impact they will have on decisions within the company.

Detailed explanation-4: -Common shareholders are granted six rights: voting power, ownership, the right to transfer ownership, dividends, the right to inspect corporate documents, and the right to sue for wrongful acts.