LAW 3102 Lecture 27: May 2
May 2
shareholders have no direct managerial rights (just own shares)
- unlike, partners who do have direct managerial rights
shareholders are not agents
- apply has huge competitor/ nokia (you can own shares of both) you can root
for both companies
- maximizing your investment
more equity = more control
- help share direction company goes in
1. right to elect board of directors
2. limited right to inspect company's’ books
3. right to vote on certain extraordinary
at least one class of shares must have full voting rights
decisions are usually made @ an annual or special meetings called
Quorum:
faculty 400 members in zicklin and we need to have at least half (200 ppl) and there
must be a majority (101 ppl)
only if 198 ppl showed up →
if you don’t have min. ppl to vote you cannot make business decisions
-invite J-lo so ppl have incentive to come!
BOD have fixed # of directors
need to have majority of shares (not shareholders)
1 shareholder = 90% of shares, you just need him/her
Straight voting
- Individual 1 vote per share
- Each share entities 1 vote for a director seat
- I own 10 shares and 3 directors up to election
- I can vote 10 times for each seat
