Shareholders Shareholders are people who have an investment stake in a corporation, in the form of a share of stock. Their financial interest in the corporation is determined by the percentage of the total outstanding shares they own. Along with their financial stake, shareholders generally receive a number of rights, all designed to protect their investment. Foremost among these rights is the power to vote. This power to vote, though limited, does give the shareholders some role in running a corporation.
Shareholders typically exercise their voting rights at annual or special meetings.
Most statutes provide for an annual meeting, with requirements for some advance notice, and any shareholder can get a court order to hold an annual meeting when one has not been held within a specified period of time. Although the main purpose of the annual meeting is to elect directors, the meeting may deal with any relevant matter, even one not specifically mentioned in the advance notice. Almost all states allow shareholders to conduct business by unanimous written consent, without a meeting. Shareholders elect directors each year at the annual meeting. Most statutes provide that directors be elected by a majority of the voting shares present at the meeting.