Shareholders

What are Shareholders?

Shareholders are individuals or entities that own shares in a company, making them partial owners. By holding shares, shareholders are entitled to certain rights, including voting on major company decisions, receiving dividends, and claiming a portion of the company’s assets in the event of liquidation. The influence of a shareholder typically depends on the number of shares they hold.

Types of Shareholders

• Common Shareholders: Hold common shares and usually have voting rights in company decisions.
• Preferred Shareholders: Hold preferred shares that typically provide priority over common shareholders for dividend payments but may have limited or no voting rights.
• Minority Shareholders: Own a smaller portion of shares, often with limited influence on company decisions.

Rights and Responsibilities of Shareholders

• Voting Rights: Participate in decision-making on key issues, such as board elections or major corporate actions.
• Dividend Entitlement: Receive a share of the company’s profits if dividends are declared.
• Access to Financial Information: Have the right to receive the company’s financial reports and other relevant information.

Related Terms and Concepts

Equity, stocks, dividends, board of directors, corporate governance.