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A mutual shareholder or stockholder is an individual or company (including a corporation) that legally owns one or more shares of stock in a joint stock company. A company's shareholders collectively own that company. Thus, such companies strive to enhance shareholder value. Stockholders are granted special privileges depending on the class of stock, including the right to vote (usually one vote per share owned, but sometimes this is not the case) on matters such as elections to the board of directors, the right to propose shareholder resolutions, the right to share in distributions of the company's income, the right to purchase new shares issued by the company, and the right to a company's assets during a liquidation of the company. However, stockholder's rights to a company's assets are subordinate to the rights of the company's creditors. This means that stockholders typically receive nothing if a company is liquidated after bankruptcy (if the company had had enough to pay its creditors, it would not have entered bankruptcy), although a stock may have value after a bankruptcy if there is the possibility that the debts of the company will be restructured. Stockholders or shareholders are considered by some to be a partial subset of stakeholders, which may include anyone who has a direct or indirect equity interest in the business entity or someone with even a non-pecuniary interest in a non-profit organization. Thus it might be common to call volunteer contributors to an association stakeholders, even though they are not shareholders. Although directors and officers of a company are bound by fiduciary duties to act in the best interest of the shareholders, the shareholders themselves normally do not have such duties towards each other. However, in a few unusual cases, some courts have been willing to imply such a duty between shareholders. For example, in California, majority shareholders of closely held corporations have a duty to not destroy the value of the shares held by minority shareholders[1].
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Shareholders Subcategories
Shareholders Articles
From A 6 Figure Bank Account To Zippo
by Devora Witts
Feb 28, 2008
Filing for bankruptcy can be a definite solution to every credit card swipe build up. However, it’s best to gather all the facts before signing away your debt. Nothing seems worse at a time when you owe thousands of dollars in debt and you have t...
Advantages to Shareholders
by Anthony Green
Nov 23, 2007
When you buy stock in a corporation, you own part of that company. So as a part of a corporation, shareholder will be entitled to share the profits of the company.
Now all the shareholders can be benefited by 2 ways:
When a company pa...
Using the Internet to learn about stock investing
by Ken Wilson
Apr 06, 2007
The Internet presents a great deal of interesting information about various subjects. Since its first appearance diverse improvements have been made and today one can find practically any kind of info he/she is interested in. The stock market and sto...
Stock Investing ? New Warren Buffett letter to Shareholders is a MODEL for the rest of us!!!!
by Richard Stoyeck
Mar 13, 2007
michaelsposato@gmail.com.
Best regards
Richard Stoyeck
http://www.stocksatbottom.com Stock Investing ? New Warren Buffett letter to Shareholders is a MODEL for the rest of us!!!!
Every year the master of stock investing, Warren Buf...
Barclays Stockbrokers Clients Are Undeterred By Falling Markets
by sam lowe
Jul 25, 2006
One in two (54%) private investors sees Contracts for Difference (CFDs) as a means of trading against a weak market, according to a recent survey by Barclays Stockbrokers. With the FTSE 100 f...
IRS Simplifies Reporting Requirements for Corps and Shareholders
by Richard Chapo
May 27, 2006
The IRS is heavily promoting electronic filing options. This promotion has run into problems with corporations because of complex regulations. The IRS is now moving to correct this problem.
IRS Simplifies Reporting Requirements for Corps and...
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