Who owns a corporation?

Answer

The shareholders own a corporation. This can range from a single shareholder in a closely held corporation to hundreds of thousands of shareholders in a publicly traded company. Stockholders may be individuals or what are called "institutional investors," such as mutual funds, retirement plans and insurance companies.

There are a variety of types of shares that can be issued by a corporation, e.g., common and preferred, and within these shares there are different classes as well. Shares can be voting or non-voting, have dividends paid out to them or not. Although the rights attached to the shares may vary, all of the shares have one thing in common - they represent an ownership interest in the corporations.

The daily operations of the corporation are overseen by the board of directors but there must be an annual meeting of the shareholders to elect the board, and often to ratify the actions taken by the board on their behalf. At this meeting the shareholders also have the opportunity to question the board as well as having the financials presented and explained to them.

This is a very general and brief answer to your question.

Answer

A corporation is a state granted "entity" whose ultimate fate belongs to the people. Regardless of stockholders, partners, and board members if the people want that corporation dissolved the corporation itself will have little recourse. Corporations exist because the people allow them to exist. Conversely and individual owns himself and does not exist by privilege granted by the state.

For more information check out http://www.answers.com/topic/corporation

First answer by ID0000000000. Last edit by Bruce. Contributor trust: 196 [recommend contributor]. Question popularity: 237 [recommend question]