The term residual claim refers to a shareholders' right to

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The residual claim is the right of shareholders to receive a share of the assets remaining after all liabilities have been paid in the event of a company's liquidation. This means that they have a claim to what is left over after all other obligations have been met, which emphasizes their role as residual claimants. Shareholders do not have an automatic right to dividends, the ability to acquire additional shares when offered, or to exercise a proxy vote.

The Term Residual Claim Refers to a Shareholders' Right to