The shareholder is owner of a portion of a corporation and thus joint owner at this enterprise. Substantial shareholder right is the participation in the general meeting the there talking and/or right to pose questions. The rights and the requests of the shareholders can be made valid also by a representative - a person of own choice, a Depotbank or a shareholder combination - in the general meeting. Within one financial year of a corporation the general meeting decides the appropriation of profits suggestion of executive committee and supervisory board as well as the accountant of the society in particular over the discharge of executive committee and supervisory board. The executive committee has the general meeting besides (without appropriate tuning) the end-of-year procedure, the report on the situation and the report of the supervisory board to submit. Further possible items on the agenda are among other things elections to the supervisory board (the executive committee is ordered not by the general meeting but by the supervisory board), capital measures and the conclusion of enterprise contracts.

In the profit of the enterprise the shareholder is taken part by the payment of parts of the profit as dividend. The right to vote and the share in the profits of the shareholder determine themselves according to the size of his portion of the society. Basis for the calculation of the dividend sum which can be paid is usually apart from the liquidity situation and the business planning in one financial year the gained profit; every now and then (industry-dependently) the dividend calculation takes place on the basis the gained cash-flow.

In the Federal Republic of Germany with the privatisation by state enterprises was tried several times, the spreading of shares in the population to increase (e.g. Preussag, Veba, Volkswagen, German Telekom and German post office). The privatisation of the Telekom starting from 1996 was first relatively successful in this regard, this met with the upswing that new Economy. In this time however with the small shareholders wrong expectations were created, which concerned the security of their investment in shares. After the collapse that and the crash of the share quotations many stock exchange beginners withdrew themselves new Economy again.

The principal shareholder is together more acting a person, a company or, however constituted, syndicate, which holds the largest block of shares at a corporation.

See also:

• Share
• Small shareholder
• Shareholder combination
• Shareholder connection contract
• Financial scandal

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