What Does a Shareholder Do in a Company?

What Does a Shareholder Do in a Company?

What Does a Shareholder Do in a Company?

According to Investopedia, a shareholder is any person owning at least one share in a corporation. A shareholder has rights outlined in the corporate bylaws. The shareholder can review the company's financial books and sue for actions that negatively impact the corporation.

Shareholders do not play a significant role in the daily operations of the company. They are not personally liable for the company’s debts or obligations. Investopedia explains that if a corporation fails and sells assets to obtain cash, the shareholder is entitled to proceeds, accordingly.

A shareholder is allowed to attend annual meetings. This level of ownership also affords the right to vote for board members and other corporate matters.