Shareholder
A shareholder is a person or entity that holds shares in a company. Rights depend on the share class, governing arrangements and applicable law and may include voting, distributions or residual claims. Share ownership does not guarantee a dividend, confer routine authority to manage staff or make the shareholder the direct owner of individual company assets. Registered and beneficial holding arrangements may require separate legal analysis.
Worked example
An investor holds 200 of 10,000 shares in an ordinary share class, or 2% of that class. This does not mean direct ownership of 2% of each company vehicle or a right to instruct its employees.
Common mistake
Assuming every share class has identical rights or treating a shareholder, director and employee as interchangeable roles.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | BT | Direct | September 2026–June 2027 |
| ACCA | SBL | Direct | September 2026–June 2027 |
| FIA | FBT | Direct | September 2026–June 2027 |