116k views
5 votes
What are the benefits of a majority shareholder​

User MappaM
by
7.7k points

1 Answer

2 votes

Answer:

A majority shareholder in a company has significant control and influence over the company's decisions and policies. Some potential benefits of being a majority shareholder include:

1. Control: Majority shareholders can exert significant control over the company's direction and decision-making, including selecting board members and executives, and approving major decisions.

2. Dividends: As a majority shareholder, you are entitled to a greater proportion of the company's profits and may receive higher dividends.

3. Increased Value: The value of the company and its stock can increase as a result of a strong performance, which would benefit the majority shareholder.

4. Greater Voting Power: Majority shareholders have greater voting power in corporate matters such as mergers and acquisitions, stock issuances, and other significant decisions.

5. Strategic Influence: Majority shareholders may be able to shape the company's strategy and long-term goals, potentially leading to higher returns.

It is important to note that being a majority shareholder also carries significant responsibilities and risks, such as potential legal liability and exposure to market volatility.

User King Jk
by
7.8k points