Majority Shareholder

Majority Shareholder – As the term suggests, majority shareholder is the one who holds and controls more than half of the shares of a particular firm/company. In companies wherein the ownership is widely distributed, the control can be obtained with the ownership of less than half of the total shares of the company.

Usually the majority shareholder is the founder or co-founder or owner of the company and in case of large and widely spread businesses which have been established for many years, the majority shareholders are the owner’s descendants. Since a company’s 50% or more shares are in control of the majority shareholder, the person holds a major and significant influence on the company’s operations and direction of the organization. Such shareholders have their own different ways of managing the company.

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While some of them might stay heavily involved in the functioning and management of the company and its different verticals, others might simply leave the entire company in the hands of senior management and executives. Majority shareholders who might wish to bid adieu to their business and company might sell their shares off to an acquiring organization or competition for a good price.

Edited and Updated 08th March 2014

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