Many commercial companies, in an effort to raise capital, go through a listing procedure on stock exchanges. Having obtained admission to trading, enterprises issue securities that give them the right to own shares in the business and offer them to a wide range of potential investors. Shares in companies are freely traded. Anyone can buy securities in the hope of making a profit. The minimum purchase volume often starts from one stock. Securities whose quotations are subject to strong fluctuations are the subject of close attention from investors and speculators. As a rule, such shares change their owners many times over a short period of time.
Public status
Companies that have placed securities on the stock market for free circulation increase their reputation and attract investment. However, public status contains a number of potential dangers. The presence of a large number of small co-owners makes it possible for any major player to purchase a significant stake, which allows them to intervene in the process of managing the company.
Voting in the general meeting
Equity securities of enterprises are divided into ordinary and preferred. Each species has its advantages and disadvantages. Preferred shares guarantee the owners regular receipt of dividends in a fixed amount, but do not give the right to participate in the management of the company. Holders of ordinary securities can vote in the general meeting, but their income from ownership of a share of the business depends entirely on the success of the business of the enterprise.
The degree of participation in the management of the company is inextricably linked with the available number of shares. The package, which includes 25% of voting securities, is called blocking. It allows at a general meeting of shareholders to prevent decision-making on critical issues related to the operation of the enterprise. Holders of 2% of securities have the right to make proposals for subsequent consideration and to nominate candidates for members of the board of directors.
Classification
Officially, Russian law does not divide shareholders into groups according to the size of their share of the business. However, the generally accepted concepts of "majority" and "minority shareholders" are used in the domestic business environment. These terms come from French words meaning "majority" and "minority". As you might guess, minority shareholders are shareholders with relatively small stakes. The exact border dividing large and small co-owners of the company is absent. It is safe to say that minority shareholders are members of a joint stock company that do not have a blocking stake.
Threshold value
There is a criterion for evaluating securities holders based on stock market liquidity. The purchase or sale of a package exceeding 5% of the shares in free float causes a stir on the stock exchange and provokes tangible fluctuations in the exchange rate. In other words, such a large share of the business cannot change the owner unnoticed by others. In accordance with this point of view, minority shareholders are holders of blocks of shares not exceeding 5% of the total. Statistics show that among small investors, owners of more than 1% of a company's securities are extremely rare.
Protecting the rights of minority shareholders
Legislators of many countries try to take into account the interests of participants with a small number of shares and lacking the ability to influence the corporate governance process. Russia also has a number of measures aimed at protecting assets held by minority shareholders. These are, first and foremost, the restrictions imposed on the actions of majorities. For example, a majority holder can buy back minority shares only at a fair price. In addition, some important corporate decisions require 75% of the vote. Access to information is one of the inalienable rights vested in a minority shareholder. This means that the company must regularly provide him with reports on the status of financial affairs.
