A Shareholder is an individual or a corporate body, such as a company or LLP, that legally owns one or more shares in the Share Capital of a Company. A Company's Shareholders collectively own that Company together. The Shareholders are also often referred to as Member of a Company. On formation of a Company the Members of the company are called Subscribers, and it is the Subscribers who sign the Memorandum of Association. Shareholders are granted special privileges depending on the type or class of Share. These rights may include:
However, Shareholders' rights to a Company's assets are subordinate to the rights of the Company's creditors. Although the Directors and Officers of a company are bound by Fiduciary Duties to act in the best interest of the Shareholders, the Shareholders themselves normally do not have such duties towards each other.
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