Warning

Info

LSDefine

Simple English definitions for legal terms

stockholder

Read a random definition: juridical act

A quick definition of stockholder:

A stockholder, also known as a shareholder, is someone who owns a part of a company. They have the right to vote for important decisions, like who is on the board of directors. They also get a share of the company's profits, called dividends. If the company does something wrong, the stockholder can sue them. This is called piercing the veil. It means the stockholder can hold the people in charge responsible for their actions.

A more thorough explanation:

A stockholder, also known as a shareholder, is a person who owns a part of a company by owning stocks. Owning stocks means that the stockholder has invested money in the company and, in return, has the right to receive a portion of the company's profits.

Stockholders have several rights, including:

  • The right to vote for board members
  • The right to receive interest and dividends from the company
  • The right to bring a lawsuit against the corporation or the board members

For example, if a stockholder believes that the board members are not acting in the best interest of the company, they can vote to replace them with new board members. Additionally, if the company is profitable, the stockholder will receive a portion of the profits in the form of dividends.

However, if the board members are negligent or the company is facing issues like thin capitalization, the stockholder could use a lawsuit to hold the board members accountable. For instance, if the board members are not following proper corporate procedures or are committing fraud, the stockholder could bring a lawsuit against them to protect their investment.

Overall, stockholders play an important role in the governance of a company and have the power to influence its direction and hold its leaders accountable.

stock purchase agreement | stockholder's derivative action

General

General chat about the legal profession.
main_chatroom
👍 Chat vibe: 0 👎
Help us make LSD better!
Tell us what's important to you
im so dumb its literally Saturday
bbq it is
law school has made me unaware of the days of the week
me too, me too
amlaw
17:40
do you guys want to hear my newest irrational fear
[] ararara
18:18
That you have so much fun tonight dancing after the sun goes down you fall in love but way too hard and your heart pops!
[] ararara
18:19
Hi wherever you are hope you have a great Saturday! Stay hydrated!
hydrating! 👹
[] ararara
19:12
Hahah lolll show those fools your dance moves!! I am actually about to start working until about 4 in the morning so I can go out of town Tuesday so avenge me!
[] ararara
19:12
I came face to face with an Amazon worker on prime day though and that was crazy. Don’t think I’ll ever forget that. They looked completely drained it was insane.
rip to that young lad, wishing them hydration and days off from work. don’t work yourself too hard ara! chronic stress kills!
[] ararara
19:16
Thanks wasp right back at you! You too! This work is really interesting! It’s one of three jobs where it’s been hard to stop before school starts for sure.
babybunny
22:59
you have to be the art hoe gf u want to see in the world
willing
manifestmoreadmissions
0:24
bunny i am trying so hard idk if i can cut it
amlaw what's your fear
amlaw
10:02
that i got rejected from washu and just didn't see the email even though i've checked my spam and everything because they don't change their portals at all
that sucks :(
amlaw
10:36
and i know its crazy lol
hahaha yes it is crazy lol
babybunny
15:03
Heard Biden dropped out of the race. Made me remember when you said bye den dropped out of my life. You'll always be my first choice nominee. No need to text back
amlaw
15:03
i have never fully comprehended any of your messages bunny
when you said bye den dropped out of my life
i have a 3.38 and hope to get a 175+ on the LSAT
Does anyone know which schools place in federal positions outside of T14? UT,SMU, TAMU, George Mason, George Washington, ASU)
odds for sls waitlist this cycle?
Justvibin123
18:33
Who ever is accepted at Wayne state and is not attending can you please withdraw your app 🥹
LSD+ is ad-free, with DMs, discounts, case briefs & more.