What major right do shareholders in a corporation possess?

Shareholders in a corporation possess the significant right to elect a board of directors. This right is fundamental to corporate governance as it allows shareholders to have a say in who will oversee the management of the corporation and make key decisions that affect the company’s performance and strategy. The board of directors is responsible for making major policy decisions, approving budgets, and overseeing executive management, which directly impacts the interests of shareholders.

While shareholders do have a role in influencing corporate policy through their choice of directors and can express their opinions on management decisions, they typically do not get involved in the day-to-day operations of the company. Managing those operations is the responsibility of the executive team and not the shareholders themselves.

Establishing corporate policy is ultimately the responsibility of the elected directors; therefore, shareholders provide input primarily through their voting power. Negotiating contracts is also outside the scope of a shareholder's rights and generally falls to the management team or specific authorized individuals within the organization.

In summary, the right to elect a board of directors is crucial as it empowers shareholders to influence the strategic direction of the corporation through their chosen representatives.