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What is a Shareholder?
A shareholder is a member of a company who has subscribed to a certain number of shares. A Limited company may have one or more shareholders and each shareholder is effectively an owner of the company.
Company shareholders are not personally liable for the company’s debts and financial obligations as they are protected by limited liability. This means, their liability is limited to the value of the investment they have made in the company.
Who can be a shareholder?
A shareholder can be:
- an individual
- a partnership
- a company, or any other corporate body
Role and Rights of a Shareholder?
- to Invest in a company.
- To Contributing to company debts up to the limit of their liability.
Entitlement to profits and surplus capital
- Receiving a portion of available profits in relation to their holdings.
- Receiving a portion of surplus capital if and when the company is dissolved.
Directors
Appointing and removing directors.
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- Deciding which powers to grant to directors.
- Setting directors’ salaries.
Making any decisions which are outside the scope of the Company Directors duties