About Shareholders: Types, Rights, Obligations, And The Difference From Investors

Illustration of shareholder (Unsplash)

YOGYAKARTA – The definition of shareholder refers to a person's ownership of shares in a company. Shareholders also have their respective rights and obligations. Apart from that, shareholders are also different from investors.

The following article will provide information regarding shareholders, starting from the definition, types, and so on.

What is a shareholder?

Shareholders are usually called stockholders. As the name suggests, shareholders own some of the shares issued by the company on the capital market. Because of this status, a shareholder can also be said to be someone who owns part of the company.

Shareholders are not only individuals but can also be other companies or legal entities that are legal and registered as share owners in the Company's Shareholder Register.

Types of Shareholder

Shareholders are divided into three types based on how many shares they own. The types are as follows

• Shareholder

Shareholders of the shareholder type own at least one share in the company.

• Majority

As the name suggests, individuals, companies or institutions that own and control more than 50 percent of a company's outstanding shares.

• Minority

This type of holder usually owns less than 50 percent of the shares.

Difference Between Shareholders and Investors

It should be noted that shareholders and investors both have to deposit money into the company, but their positions are different, especially with regard to rights and obligations. An investor does not always and does not have to be the owner of company shares, but share owners can act as investors.

Shareholders are usually the parties who invest in the company in the form of capital from the start of the company. Meanwhile, the definition of investors can be even broader. Even owners of bank deposits can be called investors.

Rights and Obligations of Shareholders

Please note that when individuals or legal entities own shares, they will get several rights and obligations that must be fulfilled by the company. In Indonesia, shareholders are regulated in the Law on Limited Liability Companies (UUPT) No. 40 of 2007.

The rights of shareholders are as follows.

• Right of Shareholders

Shareholder rights must be exercised by the company whose shares are owned. The rights that shareholders can obtain are as follows.

1. Attend and speak at every General Meeting of Shareholders (GMS);
2. Receive a share in the form of financial profits from dividends and remaining assets resulting from liquidation;
3. Exercising other rights based on UUPT;
4. The right to sue the company to court if shareholders suffer losses, including as a result of decisions of the GMS, Board of Directors and/or Board of Commissioners.
5. Minority status rights;
6. Initiating the GMS meeting;
7. Obtain information relating to the Company from the Directors and/or Board of Commissioners, as long as it is related to the meeting agenda and does not conflict with the interests of the Company.

• Shareholder Obligations

Shareholders have several obligations to be involved in monitoring and improving company performance. The obligations of shareholders are as follows.

1. Providing support to companies, especially related to finance
2. Becoming a company stakeholder, although not mandatory, shareholders can be involved in decision making.
3. Influenced by the company's sustainability, both in the form of profits and losses
4. Own company assets

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