Sophos Law Guides

Reference Material to Support Your Success.

What is a Shareholder?

Shareholders are owners of a corporation without management authority. In return, the amount of liability a shareholder is limited to is equal to the amount the shareholder put into the company (i.e., how much they paid for their stock).

Further, unlike officers and directors, most shareholders do not have any fiduciary duties to the company or their fellow shareholders. Depending on the type of entity transferring its shares, shareholders can be either individuals or incorporated entities.

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