What is Shareholder? Definition of Shareholder, Shareholder Meaning

The shareholder is the agent who is the owner of shares (aliquots of capital) in any company or business form.

The shareholder can be a natural person, as a form of his patrimony; or a legal person, that is, any company, body or entity that has a business participation among its assets.

The shareholder has the ownership of shares in which the company is divided . This makes you a partner, while giving you the ability to decide in the management and decision-making bodies.

The ownership of the company that corresponds to a shareholder is based on the number of shares it has, on the total in which its capital is divided. The fact of having part of that capital confers various rights and obligations of a political and economic-financial nature.

Naturally, there are several types of shares and, therefore, of shareholders. Some examples are the non-voting shareholder, minority shareholders, shareholders who are members of the Shareholders' Meeting. In this way, having several rights and privileges, each one of them, to supply the deficiencies or responsibilities that derive from each condition.

Basic shareholder rights

Among the basic rights of the shareholder are the following:

  • Right to the dividend : To receive the proportional part of the profits of the company.
  • Preferential subscription right : On shares when capital increases are carried out.
  • Right to a liquidation quota : In the case of liquidation of the company's assets based on its participation quota.
  • Right to information : About the situation and status of the accounts
  • Right to attend and vote : At General Shareholders' Meetings. That is, the right to be part of the government of the company and to vote on decisions.

In this way, a shareholder can, by owning part of the capital of a company, participate in the decision-making of political control in the Board of Directors . In addition, you can also participate in the profits that the company may have, and also responding with the capital in case of losses and liquidation of the company.