Q&A

Question: What is a shareholder?

A shareholder, also known as a stockholder, is a person, company or other entity that owns at least one share of a public or private company’s stock. Shareholders in private companies are usually directors, employees and investors.

Shareholders in a sense ‘own’ a share of the company and are subject to the company’s profits and losses. However, they are not personally liable for the company’s debts. They have certain rights in relation to the company such as sitting in on board meetings and inspecting company books and record. In the event that the company is liquidated, shareholders are entitled to their share of the proceeds.