The subscribers to the capital stock of a corporation are accounted stockholders even before the permanent organization of the company and the delivery of their stock, and have the right to participate in stockholders' meetings.
The individual rights of holders of common stock are, briefly: (1) To participate in stockholders' meetings, in person or by proxy, and to cast one vote for each share of stock held; (2) to participate, according to the amount of stock owned, in dividends; (3) in the event of the dissolution of the corporation, to participate, in due proportion, in any assets that may remain after paying the corporate debts. The individual rights of holders of preferred stock are governed by the conditions of issue which should be inscribed in full on the face of preferred stock certificates. In the absence of conditions, preferred stock carries all the rights of common stock, including participation in stockholders' meetings and in general dividends after the common stock has received a dividend equal to the preferred dividend.
A stockholder, as such, has absolutely no voice in the management of the company beyond his individual stock vote on matters brought before the stockholders' meetings. The subjects upon which action can be taken at these meetings may be summed up as follows: (1) Adoption or amendment of by-laws, and the passage of resolutions; (2) election of directors; (3) amendment of the charter; (4) dissolution of the company; (5) sale of the entire assets; (6) any vital or radical action; (7) exercise of any statutory or specially conferred charter powers.