Limited Company Shareholders
A shareholder is not legally responsible for the running of the property company in the same way that directors are. Essentially, they are an individual who owns shares in that company and as a result, they receive company profits through dividends. In the same way that there is a
legal condition that all companies must have at least one director, they also need to have at least one shareholder.
A shareholder can own all of the shares in the company. Although, shares can also be split equally or unequally between multiple shareholders. Let’s take a look at an example. With the assumption that this company has 4 ordinary shares, one shareholder can own 1 share and another can own 3 shares. They will then respectively own 25% and 75% of the company. Shareholders tend to have voting rights and influence in the running of the company. As mentioned, they might also be paid dividends through company profits — this is based on the % shareholding they have. So, that aforementioned shareholder with 1 out of 4 shares in the company, would typically be entitled to 25% of the earnings.