Shareholders

A Shareholder is an individual or a corporate body, such as a company or LLP, that legally owns one or more shares in the Share Capital of a Company. A Company's Shareholders collectively own that Company together. The Shareholders are also often referred to as Member of a Company. On formation of a Company the Members of the company are called Subscribers, and it is the Subscribers who sign the Memorandum of Association .
Shareholders are granted special privileges depending on the type or class of Share. These rights may include:

• The right to vote on matters such as elections to the board of directors. Usually, Shareholders have one vote per share owned, but sometimes this may not the case.
• The right to propose Shareholder Resolutions.
• The right to share in distributions of the Company's income.
• The right to purchase new shares issued by the Company.
• The right to a Company's assets during a Liquidation of the Company.

However, Shareholders' rights to a Company's assets are subordinate to the rights of the Company's creditors.
Although the Directors and Officers of a company are bound by Fiduciary Duties to act in the best interest of the Shareholders, the Shareholders themselves normally do not have such duties towards each other.