A shareholder is an individual or institution that legally owns one or more shares of stock in a public or private corporation. By law, a person is not a shareholder in a corporation until their name and other details are entered in the corporation’s register of shareholders or members.
They are generally not liable for the debts of the corporation and the shareholders’ liability for company debts are said to be limited to the unpaid share price unless if a shareholder has offered guarantees.
When more than one person are on the record as owners of a shareholding, the first one on the record is taken to have control of the shareholding, and all correspondence and communication by the company will be with that person.
Shareholders are considered by some to be a subset of stakeholders, which may include anyone who has a direct or indirect interest in the business entity. For example, employees, suppliers, customers, the community, etc., are typically considered stakeholders because they contribute value or are impacted by the corporation.
