What is a Majority Shareholder?
A majority shareholder refers to a shareholder who owns over 50% of stock in a company.
How Does a Majority Shareholder Work?
A single shareholder who maintains ownership of more than 50% of a company's outstanding stock qualifies as a majority shareholder. Majority shareholders may be individuals, such as company founders, or other companies that hold more than 50% of shares as part of their balance sheet assets.
Why Does a Majority Shareholder Matter?
A majority shareholder's ownership position provides the shareholder with substantial power over a company.