Shareholder rights are derived from the issuance of share certificates. A share certificate creates a contract between the issusing corporation and holder of the certificate. This contract gives the shareholder a vested property right in the value of the corporation. Sando Petroleum Corp. v. Williams, 321 S.W.2d 614 (Tex. Civ. App. — Eastland 1959).
A shareholder or stockholder is typically defined as a person who holds at least one share of stock in a public or private corporation. Shareholders have no power to control day-to-day operations of a business entity. Shareholder meetings must be held on an annual basis or set forth in the bylaws of the business. The eligibility to vote in these annual meetings is determined by a record date that is no more than 60 days and no less than 10 days before the shareholder meeting itself.
As usual, this blog is not legal advice. They are merely my recorded thoughts as a business lawyer and created for my intellectual pleasure.