Responsibilities of Majority Shareholders for Limited Liability Companies

The responsibility of the majority shareholder as a person who plays a role in the company’s performance is very important. A shareholder is someone who has bought shares or taken ownership of the company.

While the majority shareholder is the owner of the shares that can exercise supervision over the company, where they own at least 50% of the shares. The owner of this majority share is called majority stockholders.

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Knowing the Responsibilities of the Majority Shareholders in the Company

important you know, majority stockholders can be formed from minority shareholders who are combined up to more than 50%. However, this only applies to companies that have been listed on the stock exchange.

The majority shareholder is also referred to as the sole shareholder because it has more than 50% control over the shares in the company.

Controlling Operational Decisions

Generally a founder of a company where the owner is a descendant of the founder of the company. While the responsibility is to be able to control more than half of the voting rights of the company.

So that it can influence company decisions and main operational activities. For example, changing the CEO or board members.

These days, the majority shareholders are CEOs and Co Founders who co-found the company. But it doesn’t have to be blood related.

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Supervise and Improve Company Performance

In addition to having an influence on decisions, these shareholders must also take part in monitoring and improving the company’s performance.

This includes support in terms of company finances. Because shares can be capital for a company to be able to stand and operate in a sustainable manner.

That is why the responsibility of the majority shareholder is also the stakeholder of the company. It’s just not mandatory, but by taking this position they can take part in decision making.

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Controlling Company Sustainability

Next is to gain influence on the sustainability of a company, whether the company is making a profit or loss.

When the company suffers a loss, the shareholders also experience a loss in their share assets.

The term is impairment. And vice versa, when the company makes a profit. So that the supervision and control of the company when it is important.

In fact, these shareholders own a portion of the company’s assets. Some of the company’s assets belong to the shareholders.

Being a shareholder is a tough position and job. Because the risk of getting more losses from investors.

However, their responsibility in maintaining the company’s performance by monitoring and making decisions must be right, so that the company can continue.

Even so, this majority holder has legal protection and power, given the considerable impact on the sustainability of the company.

This is the reason why many companies avoid having a majority shareholder. Because the responsibility of the majority shareholder gives a lot of influence on the company. (R10/HR-Online)

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