What are Shareholders or Stockholders?
(back to top) The term stockholders and shareholders are the same and are the people for whom the corporation was organized. In large corporations, shareholders are merely investors who put money into the business in return for future dividends. In a small corporation, they are the people who actually start and run the corporation providing jobs for themselves. Because Shareholders are the owners of the corporation, the corporation’s Officers and Directors must ultimately serve the interests of the Shareholders. While a Shareholder’s role is not typically managerial, shareholders are not powerless concerning the affairs of their corporation. The rights of the Shareholders are governed by the Bylaws of the corporation as well as by prevailing state laws. The shareholders vote on appointing the President, elect the Board of Directors and on Major changes in the basic organization of the corporation. Shareholders, like Directors, cannot act unilaterally. They must act either at a regular
The term stockholders and shareholders are the same and are the people for whom the corporation was organized. In large corporations, shareholders are merely investors who put money into the business in return for future dividends. In a small corporation, they are the people who actually start and run the corporation providing jobs for themselves. Because Shareholders are the owners of the corporation, the corporation’s Officers and Directors must ultimately serve the interests of the Shareholders. While a Shareholder’s role is not typically managerial, Shareholders are not powerless concerning the affairs of their corporation. The rights of the Shareholders are governed by the Bylaws of the corporation as well as by prevailing state laws. The shareholders vote on appointing the President, elect the Board of Directors and on Major changes in the basic organization of the corporation. Shareholders, like Directors, cannot act unilaterally. They must act either at a regular Shareholders’
