A shareholder is a person or a company that owns shares of an enterprise. They have the ability to vote on major decisions taken by the company. They can also make money through the appreciation of their portfolio or from dividend payments. The rights and obligations of shareholders are determined by the number of shares they have, and they are able to be divided into categories like majority and minority shareholders.

Someone who holds more than 50% of a company’s shares is considered to be a majority shareholder. It is usually the company’s founders, but it can also be an entity which purchases more than 50% of the shares of an enterprise. A majority shareholder has the right to make crucial decisions and select who is on the company’s board. They also have the right to file lawsuits against a company for any wrongdoings committed by it.

You are considered a minority shareholder if you own more than 25 percent of the shares in the company. You can vote on important company decisions, but you don’t have a lot of influence over it. Minority shareholders still have the right to sue the company if it commits any wrongdoing, but they don’t have the same power as the majority shareholders.

There are two types of shareholders preferred and common shareholders. Both types of shareholders are entitled to vote on important decisions and choose who sits in the company’s board, but the kind of shares you hold determines your voting rights. Common shareholders have the most number of votes. They http://companylisting.info/ are also entitled to receive dividends if the company makes a profit for the financial year, however, they don’t receive an assured rate of dividends like preferred shareholders do.