What is meant by 'shareholder rights'?

Shareholder rights refer to the entitlements and privileges that shareholders hold within a corporation. One of the fundamental aspects of these rights is the ability to vote on significant company matters, such as electing the board of directors or approving mergers and acquisitions. This voting right ensures that shareholders can have a say in the management and strategic decisions of the corporation.

Additionally, shareholders have the right to receive dividends, which are distributions of a portion of the company’s earnings to its owners. This financial return on their investment is a significant motivation for individuals to invest in companies. Together, the right to vote and the right to receive dividends represent key ways in which shareholders can engage with and benefit from the corporation, reflecting their interests as partial owners.

The other options, while they mention aspects related to shareholders, do not accurately encompass the primary rights associated with shareholding as defined by corporate governance principles.