A shareholder is a person or an institution that owns shares in the company. They can sell their shares at profits or receive dividends. They are also able to vote on important decisions as well as participate in corporate elections. They also have access to financial information about the company. However, shareholders also have certain obligations to the company.

One of the most important responsibilities is to ensure that the company follows corporate laws and doesn’t engage in illegal or unethical actions. This includes complying with the regulations of regulatory bodies and observing the laws governing taxes. Protecting the interests of other stakeholders like employees and the general public is another obligation.

When you invest in shares, you become a shareholder. However, there are other actions you can take as a shareholder to help the company succeed. For instance, if the firm has a good sales rate and a good image, it can draw more investors, which in turn can result in higher profits for shareholders.

In small businesses shareholders are usually involved in the day-to-day decisions made by management. However, this is less typical in larger corporations in which teams of managers are responsible for making decisions. Large corporations typically have a substantial number of shareholders. In some instances, they are associated with the founders of the company or other key individuals, while in others they are primarily investors. Investors who invest a substantial percentage of the company’s stock are known as majority shareholders. They are able to make important decisions about the company, particularly when they own more that half of the company’s voting shares.

www.boardportalpro.org/what-are-shareholders

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