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Shareholders' Rights and Obligations

Shareholders' Rights and Obligations

Examine the rights and obligations that holding stock confers on shareholders, including the rights to inspection and distributions, shareholder voting, shareholder lawsuits, stock transfers, and finally the rights and obligations of shareholders in close corporations.


Welcome to our clip on shareholders’ rights and obligations!

Now that you have a good understanding of the issuance and classifications of stock, we’ll be turning to the rights and obligations that stock ownership confers on shareholders. We’ll begin with a discussion of shareholders’ rights, including the right of inspection and the right to distributions. We’ll next turn to how shareholders act and discuss the rules for shareholder voting, proxies, and voting trusts and agreements. Then we’...