A shareholder is a person, or company that owns shares of an enterprise. They can vote on major decisions made by the company. They can also earn a profit from the appreciation of their share portfolio or from dividend payments made by a business. Shareholders’ rights as well as duties are determined by the number of shares they own. They may be divided into categories such as minorities and majority.

A majority shareholder is a person who has more than 50% of the shares of a company. It is typically the founders of a company but it could be another organization that buys over 50% of the company’s shares. A majority shareholder is entitled to vote on key decisions, and can choose the members of a company’s board. They also have the option to bring lawsuits against an organization for any wrongdoing done by it.

You are a minority shareholder if you hold more than 25% of the shares in a company. You have the right to vote on important company decisions, but you don’t have any influence over it. Minority shareholders may still pursue the company for wrongdoing they have committed, but they do not have as much control as the majority shareholders.

There are two broad types of shareholders in a business such as preferred shareholders and common shareholders. Both can vote on important decisions, and they can select who sits on the board of directors. However the type you hold determines your voting rights. Common shareholders have the most number of votes. They are also entitled to receive dividends if the business earns profits during the financial year however they do not receive a guaranteed rate of dividend payment as preferred shareholders do.

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