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A shareholder is somebody who owns part or all of a company.  Shareholders can either be the creators of a company or can invest a certain amount of money into an existing company to then own a proportion of it and take some of the profits.

There must be at least one shareholder in every limited company. The shareholders don’t necessarily have to be the directors and/or the secretaries of that company, although it is often the case in smaller or newer companies that they are.

For example, if two people set up a company and become shareholders at 50% each, then whatever profits are made are split 50/50. Further people could also buy into the company by purchasing a certain proportion of shares or an existing shareholder could sell all of part of their share of the company.

If you have any further questions about being a shareholder of a company then please do not hesitate to phone or email us, or alternatively, you can simply use the live chat link available.

About The Author

Lee Murphy

MAAT and ICPA accountant, with a passion for making accountancy and bookkeeping accessible. Other interests include cloud-based software development for web and mobile access, keeping fit, reading, and entrepreneurship.

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