http://companylisting.info/2021/04/15/how-to-register-a-business-name/

A shareholder is an individual or entity that holds shares in a business and therefore has the ability to be a vote-taker in major company decisions. They can also make money through the appreciation of their portfolio or from dividend payments. The rights and obligations of shareholders are determined by the amount of shares they own and they may be classified into categories such as minority and majority shareholders.

A majority shareholder is someone who owns more than 50% of the shares of a company. It is typically the company’s founders but it could be another organization that buys more than 50% of the company’s shares. A majority shareholder can vote on key decisions and also decide the members of the company’s board. They are also able to file lawsuits against any wrongdoing committed by the company.

You are considered a minority shareholder when you own more than 25 percent of the shares of a company. You have the right to vote on important decisions but do not have much control over the company. Minority shareholders still have the right to sue the company if it commits any wrongdoing, but they don’t have the same power as the majority shareholders.

There are two types of shareholders in a company which are called preferred shareholders and common shareholders. Both have the ability to vote on crucial decisions and select who is on the company’s board of directors, however the type of shares you own determines your voting rights. Common shareholders are those with the highest votes and they also receive dividends if there is a profit in the financial year. However they don’t get an unrestricted dividend like preferred shareholders.