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by Answerbag Staff on March 18th, 2010

Answerbag Staff

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What is the primary purpose of shareholders?

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Answers. 1 helpful answer below.

  • by ChadS11 on March 18th, 2010

    Answerbag Experts

    Great Answer

    Professionally Researched. (What's this?)

    A shareholder is a person or a business that owns shares of a publicly or privately traded corporation. Shareholders act as the investors in the company to increase its growth.

    Voting

    Shareholders of a company have the ability to vote on a number of issue that the company faces, including things such as choosing the board of directors and how the company's net income is shared.

    Equity

    Every share of stock in a company grants the shareholder a larger amount of ownership of the company, increasing the amount of equity an investor has in the business.

    By-Laws

    Shareholders have the ability to review and edit the by-laws written by the company.

    Sale Restrictions

    Shareholders are able to modify the restrictions in place relating to the sale and ownership of stock.

    Assets

    Another purpose shareholders fulfill is voting on how the assets of a company should be treated and when they should be sold.

    Source:

    Venture Choice: Roles of Shareholders and Directors

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