A shareholder owns shares in a company, which carry defined rights: typically to vote, to receive dividends, and to share in capital on a winding up.
Shareholders own the company; directors run it. Shareholders are recorded in the company's own register of members, which is the legal proof of ownership — not the public register, which is only updated once a year on the confirmation statement.
Related terms
- Director — A director is a person appointed to manage a company, owing it seven statutory duties, whose appointment is published on the public register.
- Register of members — The register of members is the company's own record of who owns its shares, and it — not Companies House — is the legal evidence of share ownership.
- Person with significant control (PSC) — A person with significant control holds more than 25% of a company's shares or voting rights, or otherwise exercises control over it.
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