Shareholders or stockholders are the persons or firm or companies who purchase the shares of other company. They are the real owner of company. Shareholders may be preference shareholders or equity shareholders.
Equity shareholders can vote in annual general meeting for passing any resolution. Other side Preference shareholders have preference to get dividend with fixed rate before giving dividend to equity shareholders. All shareholders have to open demat account if they want to deal in shares. We have already told you that shareholders are the real owner of company, it means if company suffers loss then shareholders have no right to get dividend. If company is liquidated, then they can receive their money only after paying external creditors and debenture holders.
All shareholders may not be brokers but all brokers may be shareholders because brokers have right to deal in share market. If they purchase the shares on the behalf of their customers, they are only brokers not shareholders of company. But due to representing shareholders in share market, they can use some powers of shareholders while they deal.
Shareholders Vs Stockholders
If shareholders purchase shares in sets form, then they are said stockholders.
Shareholders Vs Stakeholders
Shareholders may be stakeholders, but stakeholders may be shareholders or may not. Stakeholders are the persons who are affected by that company's operations - including its shareholders, but also its bondholders, managers, workers, retired workers, suppliers, customers, and the communities where it operates.
Equity shareholders can vote in annual general meeting for passing any resolution. Other side Preference shareholders have preference to get dividend with fixed rate before giving dividend to equity shareholders. All shareholders have to open demat account if they want to deal in shares. We have already told you that shareholders are the real owner of company, it means if company suffers loss then shareholders have no right to get dividend. If company is liquidated, then they can receive their money only after paying external creditors and debenture holders. Company has to maintain good relation with shareholders and try hard to bring high rate on capital which is given in the form of shares because every shareholder wants to increase his share capital.
Shareholders have to maintain their contact with different company because they are interested to invest their hard earned money in that place from where they can get high ROI. They have to check the past records from company’s financial statements before investing their money. If any company wants to encourage shareholders, then it has to maintain fair and reliable financial statements and show evidence of its best performance with financial statements.
Rights of Shareholders
1. To transfer the shares
2. To get information of meeting of company, take part in it and Vote.
3. To check the registers and copies of receipts and take copies.
4. To take the copies of memorandum of association and article of association.
5. To receive right shares.
6. To obtain annual reports, auditor’s report, profit and loss account and balance sheet’s copies.
7. To sign the proposal of liquidation which is done by Court.
8. To take part in the committee for appointment of liquidator at the time of voluntary liquidation of company.
Shareholders Vs Members
All registered shareholders are members of company but all registered members may not be shareholders because some companies establish without share capital.
Shareholders Vs Brokers
Shareholders Vs Stockholders
If shareholders purchase shares in sets form, then they are said stockholders.
Shareholders Vs Stakeholders
Shareholders may be stakeholders, but stakeholders may be shareholders or may not. Stakeholders are the persons who are affected by that company's operations - including its shareholders, but also its bondholders, managers, workers, retired workers, suppliers, customers, and the communities where it operates.
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