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What is the role of Shareholders in company?

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The shareholders of a company are holding pillars of any business as they are company’s financial supporters. They provide finance to a company by purchasing shares in the company, and thus become shareholders and part owners of the company. Some of the roles of shareholders are -

Provide Finance Company -

Shareholders provide constant finance to the company. It is one of the best ways to raise funds from investors. For this, the company's founders give up part of the ownership to these new investors. Sometimes, the founders of a start-up company, may also provide additional capital or shares in exchange for a higher percentage of the ownership. 

Control Company’s strategies –

Shareholders also usually determine who controls a public company. They also indirectly control how the money flows.         Some shareholders can also control the strategic actions such as selling company’s parts or merging with other company.

Operations of a Company -

Shareholders play their roles in a company's operations directly or indirectly. They can also elect directors, CEO & CFO(chief financial officer) of company and also decide their salaries. They don’t tend to invest if the expectations are not met.