A shareholder is a business or person that owns shares of the business. They are able to vote on major decisions taken by the company. They can also earn a profit through the appreciation of their share portfolio or through dividend payments from an organization. Shareholders' rights and duties are determined by the amount of shares they own. They are divided into categories, such as majorities and minorities.

Someone who holds more than 50% of a business's shares is a majority shareholders. It is typically the founders, but can also be an organisation that buys more than 50 percent of shares of a business. A majority shareholder has the power to vote on key decisions, and they can also choose who is on the company's board. They also have the ability to file lawsuits against the company for any wrongdoing done by it.

If you own more than 25 percent of the company's shares and are a minority shareholder, you're considered a minority. You are entitled to vote on major company decisions however, you don't have a lot of control over them. Minority shareholders may still pursue the company for mistakes they have committed, but they do not have as much control as the majority shareholders.

There are two types of shareholders preferred and common shareholders. Both types of shareholders are entitled to vote on major decisions and select who is on companylisting.info/2021/04/06/understanding-types-of-companies/ the board, but the kind of shares you hold determines your voting rights. Common shareholders are the ones with the highest number of votes, and they are paid dividends when there is a profit during the financial year. However they don't get a guaranteed dividend rate like preferred shareholders.