Equity Shareholders

Equity Shareholders They are the owners of the company, sharing its risks, profits, and losses. They have a residual claim on the earnings and assets of a company. They are paid their share of the company’s profits after all other claims are met, and in the event of the liquidation of the company they share whatever is left of the company after all its creditors have been paid. They enjoy limited liability, i.e., liability only to the extent of their shareholding. Only equity shareholders are entitled to vote at the company’s meetings, thus controlling the management. If the company prospers, it is the equity shareholders who is the greatest gainer.

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