Shareholder voting rights should:

Question

Quizplus · Accepted Answer

Shareholder voting rights should be assigned to those with residual-claim rights, which are the shareholders who have the most to gain or lose from the company's performance. These shareholders have a direct financial interest in the success of the company, and therefore they are more likely to vote in ways that align with the long-term interests of the company and all of its stakeholders. Additionally, granting voting rights to management or small shareholders exclusively may not be in the best interest of the company as a whole, whereas assigning rights to those with residual-claim rights ensures that decisions are made with the company's overall financial health in mind. However, it is worth noting that assigning voting rights to a founder who values control can be important to maintaining the company's vision and culture.

Shareholder Voting Rights Should