Shareholder is a natural person (individual) or legal entity that owns shares of a corporation or limited partnership. The shareholder is an equity partner.
In the case of a corporation , there may be a large number of shareholders who do not necessarily participate in the management of the company, and whose interest is only receiving a dividend payment in exchange for their investment. However, the shareholders themselves are interested in the company’s development. In this case, the accounting information enables them to understand the state of affairs.
While shareholder rights vary according to the law and the articles of association, shareholders usually have the following rights :
Right to receive a dividend based on their participation and when decided by society.
Right to receive a percentage of the value of the company if it is wound up.
Right to freely sell his stock in the market. This right is sometimes limited by the statutes .
Right to vote. Usually one share equals one vote, but the percentage may vary in the statutes.
Right to information, in order to meet the management of the company. From a specific percentage regulated by law and the bylaws, a shareholder may require an audit for the whole company.