A shareholder is a person or a company that holds shares in a business and thus has the right to be a vote-taker in major company decisions. They also make money from the appreciation of their share portfolio or through dividend payments from a business. The rights and obligations of shareholders are based on the amount of shares they own and they may be classified into categories such as majority and minority shareholders.

A majority shareholder is a person who has more than 50% of the shares in a company. It is typically the founders of the business, but it can also be an organization that purchases more than 50 percent of the shares of an enterprise. A majority shareholder is entitled to vote on major decisions, and they can also choose the members of a company’s board. They also have the power to bring lawsuits against an entity for any wrongdoings committed by it.

If you own more than 25% of the company’s shares that means you’re a minority stockholder. You are entitled to vote on important decisions but don’t have much control over the company. Minority shareholders are still able to sue the company if they are guilty of any wrongdoing but they don’t have the same power as the majority shareholders.

There are two kinds of shareholders Common shareholders and preferential shareholders. Both can vote on key decisions, and they also have the ability to decide who will be on the board of directors. However the type of share you own determines the voting rights. Common shareholders are the ones who have the most votes and they also receive dividends if they earn a profit during the fiscal year. However they don’t receive the same guaranteed dividend as preferred shareholders.

http://companylisting.info/2021/04/21/creating-an-llc-what-are-the-disadvantages/