Responsibilities and Liabilities of Common Shareholders in US Companies How Much Do You Know?

Understanding the Responsibilities and Obligations of Ordinary Shareholders in U.S. Companies How Much Do You Know?

In the United States, companies are economic entities managed by shareholders, the board of directors, and management. As one of the owners of the company, shareholders play a crucial role in its operations. However, many people do not fully understand the responsibilities and obligations of shareholders, especially at the level of ordinary shareholders. This article will explore the basic responsibilities and obligations of ordinary shareholders in U.S. companies, drawing on recent news developments, to help readers better understand their roles in corporate governance.

Basic Rights of Shareholders

First, it is important to clarify the rights of ordinary shareholders. According to U.S. corporate law, shareholders have basic rights such as voting rights, dividend rights, and asset distribution rights. For example, at the annual general meeting, shareholders can vote on major issues, such as electing board members or approving management compensation plans. If the company is profitable, shareholders can also receive dividends based on their shareholding ratio.

A recent piece of news illustrates this point well. At the beginning of this year, Amazon held an annual general meeting to vote on an important environmental policy. Many shareholders actively participated in the discussion, expressing their concern and support for the company's sustainable development. This behavior is a concrete example of shareholders exercising their rights.

Responsibilities and Obligations of Ordinary Shareholders

Although shareholders enjoy numerous rights, they also need to fulfill corresponding responsibilities and obligations. For ordinary shareholders, their main responsibility lies in participating in corporate governance and making prudent investment decisions.

1. Prudence in Investment Decisions

Ordinary shareholders have the responsibility to conduct thorough research and analysis before investing. In recent years, with the rise of investment trends on social media platforms, more individual investors have entered the stock market. However, blind following can lead to serious financial losses. For instance, at the beginning of 2025, GameStop's stock price fluctuated significantly due to the influence of retail investors on Reddit forums, causing many inexperienced investors to suffer significant losses. This reminds us that as shareholders, we must base our investments on in-depth research rather than emotional judgments.

2. Participation in Corporate Governance

Beyond financial considerations, ordinary shareholders should actively participate in corporate governance. By attending general meetings and reading company reports, shareholders can gain a better understanding of the company's operational status and development strategy. For example, Apple detailed its layout in the artificial intelligence sector at last year's general meeting, attracting significant attention from many shareholders. This transparency not only strengthens shareholder trust but also enhances the company's overall image.

3. Adherence to Laws and Regulations

Ordinary shareholders must also comply with relevant laws and regulations. In the U.S., the Securities and Exchange Commission SEC is responsible for regulating compliance in the securities market. Any violation of securities laws may result in severe penalties. For example, in 2025, a California resident was sued by the SEC for alleged insider trading and ultimately sentenced and fined. This case once again highlights the importance of strict adherence to legal norms when operating stocks.

Differences Between Ordinary Shareholders and Special Shareholders

It is worth noting that there are differences between ordinary shareholders and other types of shareholders. For instance, preferred shareholders typically enjoy fixed dividend payments but are paid after common shareholders in the event of company liquidation. Institutional investors such as pension funds or hedge funds often possess stronger professional capabilities and greater influence, potentially using their positions to exert pressure on company management.

A recent survey shows that the proportion of institutional investors in U.S. listed companies has been increasing annually. This means that their in the decision-making process is also growing. By contrast, due to their large numbers and dispersion, ordinary shareholders often struggle to form a unified voice. How to effectively organize and express opinions is a major challenge facing ordinary shareholders.

Conclusion

In summary, although U.S. ordinary company shareholders enjoy many rights, they also bear corresponding responsibilities and obligations. From investment decisions to participation in governance to adherence to regulations, each step requires shareholders to make sufficient efforts. With the development of capital markets and technological advancements, it is believed that ordinary shareholders will play a more active role in corporate governance in the future. It is hoped that this article can help everyone better understand and fulfill their responsibilities and obligations as shareholders, contributing to both the enjoyment of investment returns and the development of the enterprise.