What is Shareholder?

Meaning of Shareholder

A shareholder is the name given to those who own one or more shares in a company. But we think you don’t need a whole article to find this out, do you?

The truth is that, more than a simple owner of the share of an organization, the shareholder has different rights, duties and responsibilities towards the organization , so it is precisely these three points that we will deal with below.

First of all, it is important to note that, as a general rule, every shareholder is also an investor. In turn, this investor is also a creditor . Someone who has lent something in exchange for the obligation or forecasts that they will receive an even larger amount in the future.

That is what you are reading: every investment in the financial market is, in a way, a loan.

Sometimes, the shareholder does not necessarily invest money, but other immaterial values, such as their workforce. This is not the model traditionally adopted, as in the Stock Exchange , but it may exist when creating the organization and defining the corporate structure , for example.

In the traditional model, the “ loan ” we are talking about can be done in two ways. Those who invest in credit securities agree to receive the money they lent at a future date, with interest added. This is the case for those who choose CBD and LCA.

However, a shareholder does not have this same prerogative. As you acquire a title deed , your compensation is directly related to the profit or loss of the company.

What are the different types of shareholders?

Contrary to popular belief, there is no single type of shareholder .

Depending on the size of your “ sector ” of the company and the degree of influence you have over the decisions made, you can be classified into two profiles: the minority shareholder and the majority shareholder , whether you are the controlling shareholder or not.

Minority Shareholder

By definition, the minority shareholder is one who, due to his small number of shares , does not have enough power to decide alone the direction of the institution.

If you became a shareholder by purchasing common stock , your right to vote at meetings is guaranteed. In other words, even though he doesn’t have concentrated power, he can take a stand against the organization’s problems and influence the direction the business will take.

In turn, if the shares in their possession are preferred, this does not happen, since the company is subject to the decision of the voters.

Some of the rights reserved for the minority shareholder include the so-called possibility of withdrawal, etiquette, and the institution of the fiscal council.

Controlling shareholder

As its name indicates, the majority shareholder has a profile exactly opposite to the one we saw earlier. He is the one who owns most of the company’s shares, so his will tends to prevail over those of others.

Therefore, the majority shareholder is also the controlling shareholder (which we will discuss below).

Controlling Shareholder

The controlling shareholder is the boss of the shareholders. This is because their influence on decisions made within the organization is considered extremely strong.

As you know, in most cases the majority shareholder takes this position. But there are some companies where he doesn’t. This is generally the case where there is a voting agreement orchestrated by a group of shareholders and/or a dispersed control regime.

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