Question

You may own shares of Apple, but you still can’t enter corporate headquarters whenever you feel like it. In what

sense then are you an owner of the firm?

Answer 1

A Shareholder of a company is holding a share in the assets of the company. A shareholder is also entitled to the profits which company makes by using those assets. As the basic fomat of company distinguishes the Management function from the ownership, People managing the company may or maynot be the owners i.e share holders of the company. Regulators often require the companies to obtain approval of the shareholders via a resolution in the shareholders meeting, thus the deciding power rests with the shareholders. However the extent of powers are contained in the Legislature governing that corporation.

Shareholders have right in the assets of the corporation not in the day to day mangement of the corporation.