A minority shareholder is a shareholder who does not hold majority control over a company (less than 50%). A majority shareholder, in contrast, holds over 50% of the shares within a company and therefore holds a majority of the power.

What does it mean to be a minority shareholder?

Minority shareholders are those who hold less than 51% of the shares in a corporation. ... This is because you can't sell shares in a private company on the open market in the same way that you can sell shares of a public company.

What is the role of a minority shareholder?

Sometimes called the nuclear option, a minority shareholder has the right to ask the court to wind up the company and bring it to an end. Such a significant step is usually taken only when shareholders are at deadlock and their differences can no longer be reconciled.