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Shareholder derivative suits where shareholders sue

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Shareholder derivative  suits where shareholder(s) sue directors on behalf of  corporation] What are the rights and duties of the shareholders? Shareholders generally have no right to manage the daily affairs of the corporation, but  do so indirectly by electing directors Controlling shareholders owe a fiduciary duty to minority shareholders. What are the shareholder powers?  Shareholders’ Powers  include: Approving all fundamental changes to the corporation.   Amending articles of incorporation or bylaws. Approval of mergers or acquisition.
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Sale of all corporate assets or dissolution. Shareholders also elect and remove the board of directors What are shareholder meetings and what are they for? Shareholders’ Meetings  must occur at least annually How many votes does the shareholder receive?   Voting requirements and procedures are: Notice of Meetings.  Proxy Materials. Shareholder Proposals. Quorum Requirements:   shareholders representing more than 50% of shares must be  present to conduct business. Voting Lists record of stock ownership. Other Voting Techniques.  Shareholder Voting Agreements. Voting Trusts—Trustee votes the shares. What is cumulative voting?   Cumulative Voting Cumulative Voting allows minority shareholders to get a board  member elected. What are shareholder rights? Shareholders may have various rights,  depending on the articles and bylaws: What are preemptive rights?   Preemptive Rights allows each shareholder to maintain his proportional control.
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What is a derivative suit? Shareholder’s Derivative Suit.  Shareholders sue a third party on behalf of the corporation, if the Directors fail or refuse  to correct the wrong or injury.   Shareholders must first ‘make demand’ on the board which then has 90 days to decide. When shareholders bring a derivative suit, they are doing so in the name of the  company, not individually.   What are stock dividends and how are they distributed? Dividends:  distribution of corporate profits or income ordered by the board.  Illegal Dividends. Directors’ Failure to Declare a Dividend. What is the liability of shareholders? Shareholders are generally not liable for the contracts or torts of the corporation. If the corporation fails, shareholders generally cannot lose more than their investment.  
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