Law Dictionary

majority shareholder

noun
Updated on: 26 Jul 2017

Legal Definition of majority shareholder

  1. :  a shareholder who alone or in combination with others controls a majority of the outstanding shares in a corporation


Financial Definition of MAJORITY SHAREHOLDER

majority shareholder

What It Is

A majority shareholder refers to a shareholder who owns over 50% of stock in a company.

How It Works

A single shareholder who maintains ownership of more than 50% of a company's outstanding stock qualifies as a majority shareholder. Majority shareholders may be individuals, such as company founders, or other companies that hold more than 50% of shares as part of their balance sheet assets.

Why It Matters

A majority shareholder's ownership position provides the shareholder with substantial power over a company.


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