Shareholder Concept

The terms shareholder and stockholder are used to designate the holder of the assets or part of the assets of a certain company. Technically the term owner is more generic applying to any kind of company while the term shareholder is applied to companies whose assets are represented by shares (for example anonymous societies). Another equivalent term and often used is partner, such term designates the co-ownership of a certain company in society regime.  

The shareholders of the company can or not have a direct participation in the company’s management. In many cases a company’s executive management is given to managers without participation or with minor participation in the assets being these subordinates of a non executive member where all owners of the company participate: Partners General Assembly. This Partners General Assembly usually has the capacity to decide about the big strategic guidance lines, about its own macrostructure, about the approval of accounts and appointment or dismissal of the executive organs and top supervision members.

 

 

Translated from Portuguese by Susana Saraiva, Portuguese-English and English-Portuguese translation specialist. Contact: spams@sapo.pt.