Question

Explain what property right shareholders have and why that right is insufficient to make them private property owners of corporate assets.

Answer 1

Shareholders only have only one property right to entering organizational information. This right to information has three key aspects which includes

• Information related to Pre-emptive right:Shareholders have pre-emptive right unless it is denied by the code of conduct of that organization. Shareholders are well informed to find corporate books and record of that organization to understand current stocks, inspect the number of shares and value of shares.
• Power inspection formation: Shareholders are informed that they have the right to inspect power and rights keeping accordance with rule and regulations of that organization. Shareholders are permitted to access organizational records, rights, and key factors.
• Right to core information: Property shareholders have the right to access organizational information. It includes both personal and professional information. They have the right to hold stockholders meeting and arrange agendas and minutes for the meeting.

The right to information is not sufficient enough to make them private property owners of corporate assets. Private property owners of corporate assets require

• Right to vote to either select or remove the director of corporate organization.
• Right to dividends
• Appraisal right
• Right to share organizational profitability
• Right to buy new shares on behalf of that corporate organization

Thus, the right to information is not enough.