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Defination of stockholder and the rights of the stockholder.

Defination of stockholder?

An individual or a corporation who legally owns some portion of stock (shares) of public limited or private limited company is called Stockholder of the company.

What are the Rights of Stockholders?

Following are the rights of the stockholders:

Voting Rights:
This includes electing directors and proposals for fundamental changes affecting the company such as mergers or liquidation. Voting takes place at the company's annual meeting.

 Partial Ownership of the Company:
Shareholders are the owners of the company but  it depends on the portion of  the shares they holds,the percentage of the shares they hold decides their ownership for the company although  the shareholders overall known as the partial owners of the company.

 Transfer Ownership:
Share holder has full Right to transfer ownership to his relative according to the policy of the company.

 Detail of Dividends:
Shareholder has a right to check the detail of the dividends shareholder can claim on any profits and decide whether to get the profit or to re invest it in the company again.

 Inspect Annual:
This opportunity provides the shareholder an opportunity to check the corporate the books of accounts and  records like shareholder can check thoroughly annual report .

 The Right to Sue for Wrongful Acts:
Share holder in case of any fraud can sue the company. He has full right to sue the company if he come to know about share frauds or return fraud or any other fraud related to the company returns.

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