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.

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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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