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LSDefine
Simple English definitions for legal terms
majority shareholder
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A quick definition of majority shareholder:
A majority shareholder is someone who owns or controls more than half of a company's stock. This means they have a lot of power and influence over the company's decisions. On the other hand, a minority shareholder owns less than half of the company's stock and cannot control the company's management or elect directors on their own. There are also dummy shareholders who own stock in name only for the benefit of the true owner, and controlling shareholders who have a significant number of shares that are widely distributed among many others.
A more thorough explanation:
A majority shareholder is a person or entity that owns or controls more than half of the total shares of a corporation. This means that they have a significant amount of power and influence over the company's decisions and operations.
For example, if a corporation has 100 shares of stock outstanding, a majority shareholder would own 51 or more of those shares. This gives them the ability to elect the board of directors and make other important decisions that affect the company.
On the other hand, a minority shareholder owns less than half of the total shares and does not have the same level of control or influence over the company. They may still have a voice in certain decisions, but they cannot make decisions on their own.
Overall, the majority shareholder plays a crucial role in the governance of a corporation and can have a significant impact on its success or failure.