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Shareholders

Shareholders own shares in a company and hold rights determined by the class of shares and applicable law. Shareholder rights may include voting, dividends when declared and a share of residual assets on liquidation. Rights differ between ordinary and preference shares. Creditors are paid according to their claims before shareholders receive the residual amount. A company's shares can pass between investors without changing the company's issued share capital.

Worked example

Ordinary shareholders may vote and receive declared dividends.

Common mistake

They have a residual interest after liabilities, not direct ownership of each company asset.

Where it appears in your exams

QualificationExamRelationshipPeriod
ACCA FA Direct September 2026–June 2027
ACCA K1 Supporting July 2027–August 2028
CIMA BA4 Direct Official assessment-window verification pending
FIA FFA Direct September 2026–June 2027

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