Unveiling Ownership: The Inclusive World of Company Shareholding.
Shareholders, also known as members or owners, are individuals or entities that hold shares in a company, representing ownership interest in the company. Here’s a breakdown of who can be a shareholder in a company:
1. Individuals
- Any individual, whether a resident or non-resident, can be a shareholder in a company. They may acquire shares in their own name or through entities such as trusts or partnerships
2. Corporate Entities
- Companies, limited liability partnerships (LLPs), trusts, and other corporate entities can hold shares in a company. This includes both domestic and foreign entities.
3. Partnerships
- Partnerships, including general partnerships and limited partnerships, can hold shares in a company. Each partner’s shareholding is determined by the partnership agreement.
4. Trusts
- Trusts, whether private or public, can hold shares in a company on behalf of the beneficiaries of the trust. The trustees act as the legal owners of the shares.
5. Non-Residents
- Non-resident individuals and entities, including foreign companies and foreign institutional investors (FIIs), can hold shares in an Indian company, subject to applicable foreign investment regulations and sectoral caps.
6. Financial Institutions
- Banks, financial institutions, mutual funds, insurance companies, and other institutional investors can hold shares in a company as part of their investment portfolios.
7. Government Entities
- Government bodies, including central and state governments, government agencies, and public-sector undertakings (PSUs), can hold shares in a company, either directly or through special-purpose vehicles (SPVs).
8. Founders and Promoters
- Founders, promoters, and key executives of a company typically hold shares as part of their equity ownership in the company. They may also hold special classes of shares with additional rights or privileges.
9. Employees
- Employees of a company may be offered shares through employee stock option plans (ESOPs) or employee stock purchase plans (ESPPs), allowing them to become shareholders in the company.
10. Minors
- In some jurisdictions, minors can hold shares in a company, but their legal guardians or trustees typically manage the shares on their behalf until they reach the age of majority.
The eligibility and requirements for becoming a shareholder may vary depending on the company’s constitutional documents, applicable laws, regulations, and the policies of the company. Additionally, shareholders may have rights and responsibilities outlined in the company’s articles of association and shareholder agreements.