Dictionary of Law
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shareholder :: legal definition


Shareholder - n. the owner of one or more shares of stock in a corporation, commonly also called a "stockholder." The benefits of being a shareholder include receiving dividends for each share as determined by the board of directors, the right to vote (except for certain preferred shares) for members of the board of directors, to bring a derivative action (lawsuit) if the corporation is poorly managed, and to participate in the division of value of assets upon dissolution and winding up of the corporation, if there is any value. A shareholder should have his/her name registered with the corporation, but may hold a stock certificate which has been signed over to him/her. Before registration the new shareholder may not be able to cast votes represented by the shares.

See also: corporation shareholders' meeting and Related Law Terms ↓


Related Law Terms

articles of incorporation :: n. the basic charter of a corporation which spells ... year's taxes. See also: corporation
blue sky laws :: n. laws intended to protect the public from purcha ... e sky." See also: corporation stock
board of directors :: n. the policy managers of a corporation or organiz ... he expertise. See also: corporation
bond :: n. 1) written evidence of debt issued by a company ... good up to the amount of the bond.
capital stock :: n. the original amount paid by investors into a co ... price. See also: corporation stock
common stock :: n. stock in a corporation in which dividends (payo ... oration preferred stock share stock
corporation :: n. an organization formed with state governmental ... ation public corporation securities
cumulative voting :: n. in corporations, a system of voting by sharehol ... eholders with 1,001 or more shares.
derivative action :: n. a lawsuit brought by a corporation shareholder ... on director shareholder stockholder
director :: n. a member of the governing board of a corporatio ... lso: board of directors corporation
dividend :: n. a portion of profit, usually based on the numbe ... . See also: corporation shareholder
incorporate :: v. 1) to obtain an official charter or articles of ... te by reference incorporation stock
issue :: 1) n. a person's children or other lineal descenda ... the body incorporation share stock
limited partnership :: n. a special type of partnership which is very com ... mited liability partner partnership
non-profit corporation :: n. an organization incorporated under state laws a ... harity corporation cy pres doctrine
no-par stock :: n. shares in a corporation which are issued withou ... re stated on the stock certificate.
preemptive right :: n. the right of a shareholder in a corporation to ... also: corporation shareholder stock
preferred stock :: n. a class of shares of stock in a corporation whi ... on stock corporation dividend stock
promotional stock :: n. stock issued in a newly formed corporation and ... assets or money. See also: promoter
prospectus :: n. a detailed statement by a corporation required ... rporation limited partnership stock
securities :: n. generic term for shares of stock, bonds and deb ... ee also: bond debenture share stock
self-dealing :: n. in the stock market, using secret "inside" info ... ederal Securities and Exchange Act.
share :: n. 1) a portion of a benefit from a trust, estate, ... n issue of the corporation's stock.
shareholders' agreement :: n. an employment agreement among the shareholders ... re only three or four shareholders.
shareholders' derivative action :: n. a lawsuit by a corporation's shareholders, theo ... gement. See also: derivative action
shareholders' meeting :: n. a meeting, usually annual, of all shareholders ... ctors corporation proxy shareholder
stock :: 1) n. inventory (goods) of a business meant for sa ... siness. See also: share shareholder
stock certificate :: n. printed document which states the name, incorpo ... . See also: corporation share stock
stock option :: n. the right to purchase stock in the future at a ... hares. See also: option share stock
transfer agent :: n. a person or company retained by a corporation t ... stockbroker. See also: share stock
treasury stock :: n. stock of a private corporation which was issued ... be entitled. See also: share stock
unissued stock :: n. a corporation's shares of stock which are autho ... poration share stock treasury stock
voting trust :: n. a trust which solicits vote proxies of sharehol ... ation proxy shareholder stockholder
watered stock :: n. shares of stock of a corporation which have bee ... . See also: corporation share stock

Popular Law Searches

legal definition ministerial act :: n. an act, particularly of a governmental employee ... exercising any individual judgment.
chancery legal definition :: n. a court that can order acts performed. Today ch ... ts in most states. See also: equity
testamentary disposition legal definition :: n. how the terms of a will divide the testator's ( ... named beneficiaries. See also: will
contract of sufferance :: n. a "hold-over" tenancy after a lease has expired ... y tenancy at will unlawful detainer
forthwith legal definition :: adv. a term found in contracts, court orders and s ... mediacy, with no excuses for delay.
forthwith definition legal :: adv. a term found in contracts, court orders and s ... mediacy, with no excuses for delay.
what is to wit in a legal contract :: prep. that is to say. Example: "the passengers in ... tty Bumgartner and Sherry Younger."
mirror wills legal definition :: n. the wills of a husband and wife which are ident ... d each names the other as executor.
clean hands doctrine latin :: n. a rule of law that a person coming to court wit ... ices. See also: affirmative defense
sine qua non only relates to contract law :: (see-nay kwah nahn) prep. Latin for "without which ... qua non of the injury to Playmate.

Other Law Terms - S

said :: adj. a reference back to a thing that was previous ... automobile in a negligent manner."
sale :: n. transfer of something (and title to it) in retu ... contract forced sale sheriff's sale
salvage :: 1) v. to save goods. 2) n. payment to a person or ... which saves cargo from a shipwreck.
sanction :: n. 1) a financial penalty imposed by a judge on a ... ction." See also: contempt of court
satisfaction :: n. receiving payment or performance of what is due ... n contract satisfaction of judgment
satisfaction of judgment :: n. a document signed by a judgment creditor (the p ... ord. See also: abstract of judgment
satisfaction of mortgage :: n. a document signed by a lender acknowledging tha ... id off the debt. See also: mortgage
save harmless :: v. 1) also called hold harmless, to indemnify (pro ... . See also: hold harmless indemnify
savings and loan :: n. a banking and lending institution, chartered ei ... vings into the home finance market.
scienter :: n. Latin for "having knowledge." In criminal law, ... ents were lies and thus fraudulent.
scintilla :: n. Latin for "spark." Scintilla is commonly used i ... ark) upon which to base a judgment.
scope of employment :: n. actions of an employee which further the busine ... ter and servant respondeat superior
scrivener :: n. a person who writes a document for another, usu ... r practicing law without a license.
seal :: n. a device which creates an impression upon paper ... e "sealed," but that is rare today.
sealed verdict :: n. the decision of a jury when there is a delay in ... reconvenes. See also: jury verdict
sealing of records :: n. trial records and decisions which a judge order ... eep the terms from public scrutiny.
search :: v. 1) to examine another's premises (including a v ... e search and seizure search warrant
search and seizure :: n. examination of a person's premises (residence, ... robable cause search search warrant
search warrant :: n. a written order by a judge which permits a law ... ble cause search search and seizure
second degree murder :: n. a non-premeditated killing, resulting from an a ... t degree murder manslaughter murder