Shareholder

Shareholder: a person or entity who purchases and holds shares in a company. A shareholder becomes a member of the company when their name is entered on the company’s register of members. The Companies Act (2006) (CA 2006) refers to owners of the company as members, however more informally they are known as shareholders. It is important to understand the distinction that where a limited company is limited by shares, members can be referred to as shareholders as well. Comparatively, owners of the company limited by guarantee can only be referred to as members.