What is a key feature of Ordinary Shares?

A key feature of ordinary shares is that each share typically entitles the shareholder to one vote. This means that shareholders have the ability to influence decisions in the company, such as the election of the board of directors and other significant corporate actions. This voting power is proportional to the number of shares owned, enabling those with a larger shareholding to exert greater control over company decisions.

Ordinary shares are considered a foundational form of equity in a corporation, as they come with both rights and risks. While they do not guarantee dividends, shareholders often benefit from potential capital appreciation as the company grows and profits increase. The nature of this ownership structure contributes significantly to the democratic process within a corporation, allowing shareholders to participate in governance.