Stockholders have many basic rights, especially the right to vote at the annual meeting of all...

Stockholders have many basic rights, especially the right to vote at the annual meeting of all stockholders. In the largest corporations, few stockholders vote much less to attend the meeting. Why do you believe this is so?

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Expert Solution

Generally stockholders have many rights and they are the owners of the company. They have the right to get all materials from the company with the voting rights and they also can remove and elect the members. So stockholders enjoy these kinds of rights. The voting is generally done in the annual meeting of the company. Here they will decide many things and the voting will be done in the annual meeting. But it is not necessary to attend the annual meeting.

For large corporations not every shareholders will attend the meting and few of them attend the meeting and others have the provision to vote through electronic generated system. But attending atleast one meeting is most preferable because we should have the clear idea about what is happening there. If the shareholder can not attend any of the meeting its not only affect the voting but also his understanding about the company. Usually stockholders will ask very few questions in this session. They probably dont have the clear idea about this system and procedure. Their main objective is to vote and elect or remove the chief executives. So they can done it via mail or electronically through the proxy voting system which means they need not to be there. This is why most of the share holders are not attending the annual meets all the time.

ThankYou.......

jeff jeffy answered 1 year ago

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