- Corporate LawThe corporate shareholders’ rights of a corporation differ depending on the size of the corporation. Private corporations have different shareholders’ rights than publicly traded companies. In the case of private corporations, shareholders’ rights are spelled out in shareholder agreements. In the case of larger corporations, Delaware law specifies default rules that limit the rights of shareholders. If the corporation does not follow these rules, shareholders can exercise their rights in a court of law. Listed below are some of the most common rights of corporate shareholders.
- Business TransactionsCorporations have distinct governance structures. The officers of a corporation manage day-to-day operations, and conduct business transactions and other activities. This clearly defined leadership structure assures parties doing business with a corporation that the actions of officers are legally binding. While owners don’t run the corporation directly, they are shareholders with a right to receive a portion of the company’s profits. In general, shareholders elect the board of directors and share decision-making authority in proportion to their ownership interest.
- Tax Law