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The Daily Insight Hub

Does a shareholder have to work?

Author

Sophia Koch

Updated on January 13, 2026

The Employment Judge confirmed that a shareholder does not of necessity have operational involvement with a limited company but acknowledged that it is common, particularly in smaller businesses, for the shareholders to also do the work. This means that they can also be employees.

What are the rights of a shareholder in a company?

Shareholders have the right to call a general meeting. They have a right to direct the director of a company to call an extraordinary general meeting. Shareholders have the right to get copies of financial statements. The company must send the financial statements of the company to all its shareholders.

What does it mean that someone owns a share in a company?

A shareholder, also referred to as a stockholder, is a person, company, or institution that owns at least one share of a company’s stock, which is known as equity. Because shareholders are essentially owners in a company, they reap the benefits of a business’ success.

Can a shareholder be sacked as an employee?

Employee shareholders have most of the same employment rights as workers and employees. Employee shareholders don’t have these rights: protection against unfair dismissal – apart from dismissal on grounds of discrimination and in relation to health and safety.

How many shares does the owner of a company need?

One share more than the next highest person. Someone who owns 50%+1 would be in total control as they would be able to out vote the other directors. If you have 15% and the next highest person has 14% you have a certain amount of control, however to really exert control you need to have the votes or proxies totaling 50%+1 vote to run the show.

Do you get paid for owning a share of a company?

These shares are essentially an ownership stake in the company. The value of these shares will generally fluctuate, in line with what investors believe the company to be worth. While investors may buy shares for a number of reasons, most do so to make money. Shareholders can be paid for their investment in several ways.

What does it mean to be a shareholder of a company?

When you have shares in a company, you are known as a shareholder and your shares represent ownership of a percentage of the business. Your name will appear on public record and must also be entered in the company’s own statutory register of members, which can be inspected by the public.

Why do you buy shares in a company?

These shares are essentially an ownership stake in the company. The value of these shares will generally fluctuate, in line with what investors believe the company to be worth. While investors may buy shares for a number of reasons, most do so to make money.