Which events require the approval of common stockholders?

Common stockholders have a significant role in certain corporate governance decisions, and one such decision that requires their approval is the election of a director. This event is critical as directors are responsible for overseeing the management of the company, making strategic decisions, and safeguarding shareholders' interests. The election process allows shareholders to voice their opinions and choose representatives who align with their interests.

The declaration of a stock split also requires shareholders' approval because it can affect the value of their shares and alter the overall capital structure of the company. A stock split adjusts the number of shares outstanding and can impact market perceptions, making it a decision that warrants common stockholder consent.

In contrast, other events listed, such as declaration of dividends, stock buybacks, changes in corporate name, issuance of bonds, and annual financial reports, typically do not require direct approval from common stockholders. While shareholders may have a keen interest in these matters, they are typically decided by the board of directors or corporate management within the framework established by corporate governance policies.