Ownership rights held by common shareholders


The owners of a corporation are its shareholders. If a corporation has only one class of shares, they typically are labeled common shares. Each of the following are ownership rights held by common shareholders, unless specifically withheld by agreement except:

A. The right to vote on policy issues.

B. The right to share in profits when dividends are declared (in proportion to the percentage of shares owned by the shareholder).

C. The right to dividends equal to a stated rate time par value (if dividends are paid).

D. The right to share in the distribution of any assets remaining at liquidation after other claims are satisfied.

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Accounting Basics: Ownership rights held by common shareholders
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