Who is considered a shareholder?

A shareholder is defined as an individual or institution that owns shares in a corporation. This means they have a financial stake in the company and are entitled to certain rights, such as voting on corporate matters and receiving dividends when the company profits. Shareholders can significantly influence business decisions and policies based on the number of shares they own. This ownership reflects their investment in the company and their interest in its growth and success.

In contrast, individuals managing the daily operations of a business typically hold roles such as managers or executives but do not necessarily own shares. Members of the board of directors are responsible for overseeing the company's activities and making key decisions but are not automatically shareholders unless they own shares themselves. Lastly, business partners in a Limited Liability Company (LLC) have a different structure and ownership model compared to shareholders, as they possess a stake in the LLC rather than shares in a corporation. This distinction emphasizes that being a shareholder is specifically tied to owning shares in a corporation.