Shareholders are people who own shares in public companies proportionate to their investment. But not all of them are equal. There are majority and minority shareholders, and they have different rights and responsibilities.
In simple terms, a majority shareholder is the owner of a number of shares that allow him to have a controlling stake and influence the company’s major decisions.
The concept of majority ownership is not always associated with a specific share in the share capital. The share of such a shareholder depends on the ownership structure of the company. For example, in companies with a large number of shareholders, where the shares are distributed relatively evenly, no one may have a majority, and in such a case there is no clear majority.
A minority shareholder is someone whose share in the company’s capital is less than 50% and, as a rule, does not give the right to control the company’s major decisions.
Minority shareholders can influence the company’s policy, but their rights are limited. However, they have the right to protect their interests, participate in the general meeting of shareholders and receive sensitive information about the business.
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