Common stockholders not only have the right to elect the board but also must approve day-to-day decisions of the chief executive officer.

Question

Quizplus · Accepted Answer

Common stockholders typically do not have the right to approve day-to-day decisions of the chief executive officer. They only have voting rights for electing the board and major corporate decisions such as mergers or changes to the charter or bylaws.

Common Stockholders Not Only Have the Right to Elect the Board