Shareholder

A Shareholder, also known as a Stockholder, is an individual or institution that owns Shares in a Corporation. Shareholders are part owners of the company and have a claim on a portion of the company’s Assets and earnings. The extent of ownership is proportional to the number of Shares held. Shareholders may receive dividends, participate in Shareholder meetings, and have voting rights in corporate decisions.

For example, if a company has issued 1,000 Shares and a person owns 100 Shares, that person owns 10% of the company. If the company declares a dividend of $1 per Share, the Shareholder would receive $100.

In legal cases, such as Revlon, Inc. v. MacAndrews & Forbes Holdings, Inc., the court emphasized the fiduciary duty of the Board of Directors to act in the best interest of Shareholders during Mergers and Acquisitions, highlighting the rights and responsibilities of Shareholders in corporate governance.