- The owner of one or more shares of a corporation. A shareholder has rights conferred by state law, by the bylaws of the corporation, and if one has been adopted, by a shareholders' agreement, such as a buy-sell agreement. The rights include being notified of annual shareholders' meetings, voting for directors (unless the shares are preferred stock), and receiving an appropriate proportion of any dividends. Shareholders of large corporations are usually investors whose shares are held in the name of their broker. In small corporations, a shareholder may also be a director, officer and employee. Also known as a stockholder.
Business law dictionary. 2015.
Look at other dictionaries:
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