Most of the decisions which are made in the annual meeting of the company are taken in a democratic style and the decision which is favored by the majority votes are executed accordingly.

An investor who has the majority of the company’s votes will be able to recruit whomever he prefers to the board of directors in a way to guarantee that its members are skilled enough to act in accordance with his/her interests in the business.

The investor with the majority voting right can decide on several things about the company like where the company should source the raw materials from. He can stress that the raw materials should be sourced only from the company he owns, he can appoint his spouse as the CEO with a salary of $50,000 a month, or he can even prefer to be paid for his consultation etcetera.

The value of a shareholder of the stock increases as the voting rights increase, even if other shares are worked out with the same profit sharing rights.