Right to Vote on Relevant Matters
Holders of common stock generally have voting rights as a privilege of ownership, as defined in the issuer’s charter and bylaws. They can vote to elect the corporate board of directors and to approve corporate resolutions, such as mergers and acquisitions, and changes of business direction. They do not have a right to vote on whether the company should pay a dividend. Interestingly, the rule on whether a stock split requires a shareholder vote varies by state. Voting takes place at a regular annual shareholder meeting, at which the shareholders elect board mem