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Common stock ownership always carries voting rights, but the nature of the rights and the specific issues shareholders are entitled to vote on can vary considerably from one company to another.
Voting shares are shares that give the stockholder the right to vote on matters of corporate policymaking. In most instances, a company's common stock represents voting shares. Different classes of shares, such as preferred stock, sometimes do not allow for voting rights.
In an annual meeting shareholder vote, the following parties can participate: Registered Shareholders: Shareholders who own shares directly in their names and are listed as the owner in the company's register of shareholders have the right to participate in the annual meeting and vote.
Shareholders typically vote for the board of directors at the annual meeting of shareholders. In most cases, shareholders can vote in person at the meeting or by proxy, which allows them to appoint someone else to vote on their behalf. Some companies may also allow shareholders to vote by mail or online.
Each stockholder gains one vote for every share they own, but the way votes are cast depends on the company's voting structure. Stockholders can vote on various items, from the BOD to dilutive actions (covered later). Two primary ways for a stockholder to vote are at the annual stockholder meeting or through a proxy.