Every company must have at least 1 shareholder and at least 1 share.
Shareholders are investors in the company, but they are not responsible for the day-to-day management of a company’s business or its affairs.
They have the right to vote at meetings of shareholders on some decisions about how the company is run including:
- changes made to a company’s constitution
- approving major transactions, and
- authorizing dividends.
The number of shares each shareholder owns determines the level of voting control they have.