{"id":12382,"date":"2024-05-28T07:58:11","date_gmt":"2024-05-28T06:58:11","guid":{"rendered":"https:\/\/www.qualitycompanyformations.co.uk\/blog\/?p=12382"},"modified":"2024-06-06T14:04:15","modified_gmt":"2024-06-06T13:04:15","slug":"shareholder-vs-stakeholder","status":"publish","type":"post","link":"https:\/\/www.qualitycompanyformations.co.uk\/blog\/shareholder-vs-stakeholder\/","title":{"rendered":"Shareholder vs stakeholder – what\u2019s the difference?"},"content":{"rendered":"

As a business owner, you\u2019ll come across many corporate buzzwords. Two such words are \u2018shareholder\u2019 and \u2018stakeholder\u2019. You might already know what these mean, or you may have an idea, but for some entrepreneurs, they\u2019ll be entirely new concepts.<\/p>\n

In this post, we explain the differences and similarities between stakeholders and shareholders, and the roles they play within a company.<\/p>\n

What is a shareholder?<\/h3>\n

A shareholder, also known as a member, is someone who owns one or more shares in a company. Those shares represent the shareholders\u2019 portion of the business and provide them with certain rights and responsibilities.<\/p>\n

What is a shareholders\u2019 agreement and why do I need one?<\/span><\/a>\n What\u2019s the difference between shareholders and members<\/span><\/a>\n <\/p>\n

These rights and responsibilities are detailed in the company\u2019s articles of association and any shareholder agreements that might be in place. Although they can vary from company to company, the general rule is that the greater the proportion of shares someone holds in a company, the greater their ownership.<\/p>\n

The role of a shareholder<\/h3>\n

Shareholders don\u2019t typically get involved in the day-to-day running of a business. Their exact role will be dictated by the rights attached to their shares. Their rights will typically include things such as:<\/p>\n