Shareholder ownership

Shareholder ownership
Indeed the role of shareholders as owners of a corporation has been universally accepted. This is so because it’s the shareholders who have ownership in the company stocks. However, this, in reality, is mostly never the case. The company or corporation at large is a collection of investors like the bond holders who give out bonds, the suppliers who supply goods to the company, the workers who supply or input labor for wages just like the shareholders who own stocks are just part of the holders or investors in a company. The corporation is, therefore, a pull of people who come together to invest in various forms like the ones labeled above. Indeed the shareholder cannot be labeled as the owner of a company he or she has limited access to the company; he cannot direct the today operations and functioning of the company. Moreover, the shareholder supremacy is very week in that it the duty of the directors to make sure that other parties like the investors are paid first before prioritizing the shareholders (Greenfield, N.p).
Even when doing a stock split and any form of shares consolidation, the move does guarantee shareholder ownership. Shareholders at times use stocks like splitting them to ensure they have control over the company. This move does confer any special power apart from the right to vote. The majority shareholder cannot interfere with the management of the company in any way and should it be tried then it’s an illegal action. The Google attempt to ensure a stock split where other owners would be more powerful is not a guarantee of a shareholder control (Winkler, N.

p). It’s safe to say that the directors of a company are the real owners of a company. This is so because only they have the right to direct and control, company assets and direct the future management of a company (“Who Owns the Corporation? Nobody”, N.p).
Today critics argue that the shareholder supremacy should be scraped to allow the directors to have the guard to ensure financial security in the banking sector. The shareholders have a right to income from the company investment but have no right for income on assets owned by the company. Only the directors have the powers for the use of such assets. Moreover, dividends are declared only after authorization from directors of the company. It’s only after this that the dividend can be distributed to shareholders (“The nonsense of shareholder ownership: what we should know,” 2016).
Work cited
Greenfield, Kent. “Policy Network – Are Shareholders Owners?” Policy-Network.Net, 2012, http://www.policy-network.net/pno_detail.aspx?ID=4259&title=Are-Shareholders-Owners.
The nonsense of shareholder ownership: what we should know. (2016). Left Foot Forward. Retrieved 9 December 2016, from http://leftfootforward.org/2014/09/the-nonsense-of-shareholder-ownership-what-we-should-know/”Who Owns The Corporation? Nobody”. Professorbainbridge.Com, 2016, http://www.professorbainbridge.com/professorbainbridgecom/2006/02/who-owns-the-corporation-nobody.htmlWinkler, Rolfe. “That ‘Class C’ Google Stock Split Is Finally Happening. Here’s what it Means.”. WSJ, 2016, http://blogs.wsj.com/digits/2014/03/27/that-class-c-google-stock-split-is-finally-happening-heres-what-it-means/.