Are there different types of shareholders?

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I’ve got a limited company question that I’m hopeful you can help me out with. I’m aware that limited by shares companies can have different share classes. So, what I’m wanting to know is whether limited companies can also have different types of shareholders? Or, do all companies have the same type of shareholders, and some merely have different share classes? So confusing! Thanks

Answers

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There are different types of shareholders, yes. You can have a natural shareholder - this can refer to an individual person, or two or more people who jointly own a share together. Alternatively, you can have a corporate shareholder. This is the term for a non-human entity that hold shares in a compan. A corporate shareholder can be:

  • A private limited company
  • A public limited company
  • An organisation
  • A charity or social enterprise
  • A corporate group
  • A general partnership, limited partnership or limited liability partnership (LLP)
  • A trust
  • A co-operative
  • A society
  • An institution
  • A sole trader

Natural shareholders and corporate shareholders are treated exactly the same as one another - their rights and obligations to the company in which they hold shares will be depend on the types of shares they own and the rights attached to them.

a year ago
 

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