Editing Shareholder (section)

== Rights ==
Subject to the applicable laws, the rules of the corporation and any [[shareholders' agreement]], shareholders may have the right:
* To sell their shares.<ref name="velasco">{{cite journal|last1=Velasco|first1=Julian|date=2006|title=The Fundamental Rights of the Shareholder|url=https://lawreview.law.ucdavis.edu/issues/40/2/articles/davisvol40no2_velasco.pdf|journal=U.C. Davis L. Rev.|volume=40|pages=407–467|access-date=16 April 2018 |url-status=live |archive-url=https://web.archive.org/web/20180417191814/https://lawreview.law.ucdavis.edu/issues/40/2/articles/davisvol40no2_velasco.pdf |archive-date= Apr 17, 2018 }}</ref>
* To vote on the directors nominated by the board of directors.<ref name="velasco" />
* To nominate directors (although this is very difficult in practice because of minority protections) and propose [[shareholder resolution]]s.<ref name="velasco" />
* To vote on mergers and changes to the corporate charter.<ref name="velasco" />
* To [[dividend]]s if they are declared.<ref name="velasco" />
* To access certain information; for publicly traded companies, this information is normally publicly available.<ref name="velasco" />
* To sue the company for violation of fiduciary duty.<ref name="velasco" />
* To purchase new shares issued by the company.
* To vote on & file [[shareholder resolution]]s.
* To vote on management compensation ([[say on pay]]).<ref>{{cite journal |last1=Kind |first1=Axel |last2=Poltera |first2=Marco |last3=Zaia |first3=Johannes |title=The value of say on pay |journal=[[Journal of Banking and Finance]] |date=2024 |volume=169 |url=https://doi.org/10.1016/j.jbankfin.2024.107311}}</ref>
* To vote on management proposals.
* To what [[asset]]s remain after a [[liquidation]].

The above-mentioned rights can be generally classified into (1) cash-flow rights and (2) voting rights. While the value of shares is mainly driven by the cash-flow rights that they carry ("[[cash is king]]"), voting rights can also be valuable. The value of shareholders' cash-flow rights can be computed by discounting future free cash flows. The value of shareholders' voting rights can be computed by four methods:
* The difference between voting shares and non-voting shares (dual-class approach).<ref>{{cite journal |last1=Zingales |first1=Luigi |title=The value of the voting right: a study of the Milan stock exchange experience |journal=Review of Financial Studies |date=1994 |volume=7 |pages=125–148 |doi=10.1093/rfs/7.1.125}}</ref>
* The difference between the price paid in a block-trade transaction and the subsequent price paid in a smaller transaction on exchanges (block-trade approach).<ref>{{cite journal |last1=Dyck |first1=A. |last2=Zingales |first2=L. |title=Private benefits of control: an international comparison |journal=Journal of Finance |date=2004 |volume=59 |pages=537–600 |url=https://www.nber.org/papers/w8711 |doi=10.3386/w8711|doi-access=free }}</ref>
* The implied voting value obtained from option prices.<ref>{{cite journal |last1=Kind |first1=Axel |last2=Poltera |first2=Marco |title=The value of corporate voting rights embedded in option prices |journal=Journal of Corporate Finance |date=2013 |volume=22 |pages=16–34 |doi=10.1016/j.jcorpfin.2013.03.004}}</ref>
* The excess lending fee over voting events.<ref>{{cite journal |last1=Christoffersen |first1=Susan |last2=Geczy |first2=Christopher |last3=Musto |first3=David |last4=Reed |first4=Adam |title=Vote Trading and Information Aggregation |journal=The Journal of Finance |date=2007 |volume=62 |issue=6 |pages=2897–2929 |doi=10.1111/j.1540-6261.2007.01296.x|url=https://repository.upenn.edu/cgi/viewcontent.cgi?article=1132&context=fnce_papers }}</ref>