Legal Topics >

Nolo's Plain-English Law Dictionary

Need Professional Help? Talk to a Lawyer
Enter Your Zip Code to Connect with a Lawyer Serving Your Area

Shareholder: An owner of a corporation whose ownership interest is represented by shares of stock in the corporation. The benefits of being a shareholder include the right to vote for members of the board of directors, to receive dividends if approved by the board of directors, to participate in a division of assets the upon dissolution and winding up of the corporation, and to bring a derivative action (lawsuit) if the corporation is poorly managed. A shareholder's rights may be limited by a buy-sell agreement. Also called a stockholder.

Need Legal Help?
Get Informed	Check out our thousands of free articles on everyday legal topics--they're accurate, up to date, and written in plain English.
Do It Yourself	With Nolo's easy-to-use books, legal forms, online services, and software, you can handle many routine legal tasks yourself.
Talk to a Lawyer	Just enter your zip code to connect with a lawyer serving your area.

More Information

Get Informed