A shareholder, also referred to a stockholder, is a person, company, or institution that owns at least one share of a company’s stock, which is known as equity. Because shareholders are essentially owners in a company, they reap the benefits of a businesses’ success.
- What are the roles and responsibilities of a company shareholder?
- Does a shareholder manage the day to day business of the company, or is this entrusted to the board of directors?
A firm usually holds an annual meeting for the shareholders to attend and vote on company issues as well as for a board of directors. However, shareholders may also submit their votes by proxy. The shareholders then vote on the action at hand whether it be a change to the bylaws of the company, a merger, dissolution of the company or actions that are not in the general course of business.
- By voting, are the shareholders in fact enacting their ownership rights?