A shareholder is a person or institution that owns shares in a company. They may be eligible for dividends or sell their shares for profit. They also have the option of voting on important decisions and be a part in corporate elections. They also have access to financial information about the company. However, shareholders are bound by certain obligations to the company.
One of the most important duties is to ensure that the company is in compliance with corporate laws and doesn’t engage in illegal or unprofessional activities. This includes compliance with regulatory bodies and following the law regarding taxes. Also, ensuring the interests of other stakeholders, such as employees and the general public is a further duty.
As a shareholder, you can take a variety of actions to help your company grow. For instance, if a company has a high number of sales and a good image, it can draw more investors, which in turn will result in greater profits for shareholders.
In small companies, the shareholders are often closely involved in day-today management decisions. However, this is less common in larger companies where teams of managers are in charge of making decisions. Large companies tend to have a high number of shareholders. In some instances, they are related to the founders or other key individuals in the company, however in other instances they are mostly investors. Investors who buy a large proportion of the company’s shares are referred to as majority shareholders. These shareholders have a lot of power in www.boardportalpro.org/what-are-shareholders making critical operational decisions, especially when they control more than half of the voting shares.