The voting power of a common shareholder is strictly proportional to the number of common shares she or he holds.

Question

Quizplus · Accepted Answer

This statement is true. Common shareholders have voting rights proportional to the number of common shares they hold. For example, if a shareholder owns 10% of a company's common shares, they have the right to cast 10% of the total votes in any election of directors or other matters requiring shareholder approval.

The Voting Power of a Common Shareholder Is Strictly Proportional