A shareholder is an individual or a company that holds shares in a company and is therefore able to take part in major company decisions. They can also make money through the appreciation of their portfolio or dividend payments. The rights and duties of shareholders are based on the number of shares they have, and they may be separated into categories like minority and majority shareholders.
A majority shareholder is someone who owns more than 50% of the shares in a company. It is typically the company’s founders but it could also be another company that purchases over 50% of the company’s shares. A majority shareholder is able to vote on important decisions and select the members of the company’s board. They can also file lawsuits for any wrongdoing by the company.
You are considered a minority shareholder when you hold more than 25% of the shares in the company. You can vote on important company decisions, but you don’t have much control over them. Minority shareholders can still pursue the company for wrongdoing they’ve committed, however they do not have the same control over the company as the majority shareholders.
There are two types of shareholders preferred and common shareholders. Both are able to vote on major decisions, and they also have the ability to select who sits on the board of directors. However the type of shareholder you have determines the voting rights. Common shareholders are those with the highest votes and they get dividends if there is a profit in the financial year. However http://companylisting.info they don’t get the same guaranteed dividend as preferred shareholders.
