A shareholder is an individual or a company that holds shares in a company and thus has the right to vote on major company decisions. They can also earn a profit through the increase in their share portfolio or through dividends paid by the business. Shareholders' rights and obligations are determined by the number of shares they own. They can be classified into categories such as minorities and majority.

A majority shareholder is one who owns more than 50% of the shares of a company. It is usually the founders, but it could also be an organisation that buys more than 50 percent of shares of an enterprise. A majority shareholder can vote on important decisions and decide who sits on the board. They also have the option to sue the company for any wrongdoings committed by it.

If you own over 25% of the company's shares that means you're a minority stockholder. You have the right to vote on important company decisions but you have no control over them. Minority shareholders still have the right to sue the company in the event that it commits any wrongdoing, but they do not have the same power as majority shareholders.

There are two types of shareholders that are common shareholders and preferential shareholders. Both have the right to vote on important decisions and choose who is on the board, but the kind of shares you own determines your voting rights. Common shareholders are the ones with the highest votes and they get dividends if there is a profit in the financial year. However they don't get a guaranteed dividend rate like preferred shareholders.