Shareholders

Question 1

Shareholder Roles

Answer 1

• Elect directors
• No management roles

Question 2

Shareholder rights

Answer 2

• Dividend rights
  
  • Rights to a current return on their investment
• Liquidation rights
  
  • rights to a share fo the corporate assets at the end of the corp’s existence
• Voting rights
  
  • Rights to a voice in the management of the corporation

Question 3

Derivative Suit

Answer 3

• Shareholder sues on behalf of the corp to redress a wrong to it when the corp fails to enforce its right
• Plaintiff must allege that he was a shareholder at the time of the transaction complained of, or that his shares thereafter devovled upon him by operation of law