QS Study

Shareholders are the ultimate owners as well as the significant members of the Company. People bearing one or more share of the company are being called as the shareholders or the stockholders. They are individual, group, or organization that owns one or more shares in a company, and in whose name the share certificate is issued. It is legal for a company to have only one shareholder. He must own shares of stock to qualify, but it doesn’t matter if they’ve purchased the stock or been given it as an incentive or part of their pay.

They are the suppliers of the capital and bearer of profit-loss of the company. Along with the ownership comes a right of taking part in the annual meetings of the company, receiving dividends for each shares as determined by the Board of Directors, the right to vote for members of the board of directors excepts for certain preferred shares, to bring a derivative action or lawsuit if the corporation is poorly managed, and to participate in the division of value of assets upon dissolution and winding up of the corporation. Shareholders cannot get the directorship in the company but certainly have the right to elect the board of directors. Shareholders also have the right to attend the corporation’s annual meeting to learn about the company’s performance or listen to the meeting via conference call.