Answer: Nothing would get done in the company
Explanation: an individual shareholder owns such a small portion of the company that if they allowed each such holder to have voting rights, nothing would get done with the company. Thus, there’s usually some threshold that people have to cross before they have voting rights and get to participate in corporate decision making. With some companies, that comes in the form of special voting shares where ownership of only those shares allow you to actually vote. In other companies, if you own a small amount, you vote by proxy, meaning you assign someone else to vote on your behalf.
Each shareholder has such a little percentage of the corporation, if they gave them all voting rights, nothing would get done with the business.
Before someone can vote or participate in corporate decision-making, they typically have to pass a certain threshold. This can take the form of special voting shares with some corporations, where only ownership of those shares gives the ability to cast a vote.
If a person possess a tiny stake in some corporations, they can vote by proxy, which allows you to designate another person to cast your ballots on your behalf.
Thus, Each shareholder has such a little percentage of the corporation
For more details about fundamental in voting rights at a company, click here:
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