atefwasfy (asker) Sep 27, 2009:

Stockholders typically have an opportunity to vote on such major
decisions as mergers and acquisitions, as well as various social issues that may come
before the annual meeting. (Stockholder voting power should be distinguished from the
voting power exercised by citizens, which is discussed below.)
In 2002, a group of stockholders at Hewlett Packard (HP) tried to exercise their
voting power to block a proposed merger with Compaq Computer. The
company’s CEO and a majority of its board believed that a merger would benefit
both firms by allowing them to bring together their capabilities in printers,
peripherals, and computers. But one member of HP’s board, Walter Hewlett, a
son of the company’s founder, opposed the merger on the grounds that it would
destroy the egalitarian culture that was a core part of company’s legacy. As
required by law, the matter was put to a vote of the stockholders. In a series of
letters, advertisements, and meetings, Hewlett organized other stockholders to
vote against management’s proposal. Ultimately, stockholders approved the
merger—but by a very narrow margin.