Shareholder Definition

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.