What determines a shareholder's voting rights?

A shareholder's voting rights are primarily determined by the class of shares held. In many companies, different classes of shares can confer different levels of voting power. For instance, common shares typically provide voting rights wherein shareholders can participate in corporate decisions, such as electing directors or approving major corporate actions. On the other hand, certain classes of shares, such as preferred shares, may have limited or no voting rights at all.

This structure allows companies to tailor their share offerings to meet various strategic and financial needs. For example, founders may retain voting control by issuing a class of shares that have enhanced voting rights, while still raising capital through shares that have limited or no voting rights for investors.

The total amount invested does not inherently determine voting rights. Similarly, a company's net income can influence shareholder value but does not directly affect the voting rights associated with shares. Additionally, the length of time an investor holds shares usually does not alter their voting rights unless specific agreements or conditions are stipulated by the company, which is uncommon. Thus, the class of shares is the clear determiner of voting rights among shareholders.