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
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| 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 |
