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Minority shareholder

Minority Shareholder

A minority shareholder is an individual or entity that owns less than 50% of a company’s voting shares. Minority shareholders have limited influence over corporate decisions, as they lack controlling interest. However, they still have legal rights, such as the right to vote on major company issues, receive dividends, and be informed about company activities. Minority shareholders are often protected by regulations that prevent majority shareholders from acting unfairly.

Example

An investor holds 10% of a company's shares, making them a minority shareholder with limited control over the company’s decisions.

Key points

• A shareholder who owns less than 50% of a company’s voting shares.

• Has limited influence over corporate decisions but retains voting and dividend rights.

• Protected by regulations that ensure fair treatment by majority shareholders.

Quick Answers to Curious Questions

A minority shareholder is an individual or entity that owns less than 50% of a company’s voting shares and has limited control.

They retain the right to vote on major issues, receive dividends, and be informed about company activities.

Regulations protect them from unfair treatment by majority shareholders, ensuring their rights are respected.

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