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What is Shareholder
Shareholder is a partner of the joint stock company. The size of his share is expressed by the number and nominal value of held shares to the total number of shares of the company.

Shareholder is a partner of the joint stock company. The size of his share is expressed by the number and nominal value of held shares to the total number of shares of the company. A shareholder may purchase shares in the capital markets, particularly on the stock exchange or he can purchase them any other way, which varies according to the legislation of the countries. In some countries it is possible to buy employee shares directly from the employer.

Shareholder has three basic rights:

  • Right to profit (dividend)
  • Right to manage the joint stock company
  • Right on the liquidation

A shareholder is obliged to repay the issue price of shares, which he signed in joint stock company formation. A shareholder is not liable for the obligations of joint stock company. After the termination of the company, he is liable for his share on the liquidation.

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Last update: 27.08.2015

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