Majority Shareholder
What It Is:
A majority shareholder refers to a shareholder who owns over 50% of stock in a company.
How It Works/Example:
A single shareholder who maintains ownership of more than 50% of a company's outstanding stock qualifies as a majority shareholder. Majority shareholders may be individuals, such as company founders, or other companies that hold more than 50% of shares as part of their balance sheet assets.
Why It Matters:
A majority shareholder's ownership position provides the shareholder with substantial power over a company.
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Cached on May 24, 2012, 10:20 am