Shareholding

Definition

Shareholding. Legal power of stockholders (shareholders) varies in proportion to their shareholdings.

• Typically, ten percent and below stockholding provides no protection.
• Fifteen percent stockholding may give the power to petition courts against changing the shares class rights.
• Up to 49.9 percent stockholding normally gives power to demand calling of an extraordinary general meeting.
• Fifty percent and over stockholding gives power to fire a director and force out minority stockholders by acquiring their shares as per the rules of the firm.
• Holder of 75 percent of the stock has the power to change the articles and memorandum of association and the firms name, reduce the share capital, allow the firm to buy its own shares from other stockholders, and to shut down the business.
• One hundred percent stockholding of course gives total power under the corporate legislation.

See Also

• http://www.businessdictionary.com/definition/company-shareholdings.html

Disclaimer

This entry annotates a FIBO Ontology Class. FIBO is a trademark and the FIBO Ontology is copyright of the EDM Council, released under the MIT Open Source License. There is no guarantee that the content of this page will remain aligned with, or correctly interprets, the concepts covered by the FIBO ontology.