Shareholders

A shareholder refers to an individual or legal entity who is registered by the corporation as the legal owner of shares of its share capital. Both public companies and private corporation have shareholders. Shareholders may also be referred to as members of a corporation. A person or legal entity becomes a shareholder in a corporation when they acquire shares and their name and other details are entered in the corporation's register of shareholders or members, and unless required by law the corporation is not required or permitted to enquire as to the beneficial ownership of the shares. A corporation generally cannot own its own shares.