Which group typically holds ownership in a limited company?

• A. The general public
• B. The board of directors
• C. Shareholders
• D. The regulators

Answer: (C)

Ownership in a limited company is held by the shareholders. These are the people or entities that own the company’s shares, and their level of ownership is determined by how many shares they hold. Shareholders have rights such as voting at general meetings and receiving a portion of profits through dividends or by the value of their shares increasing. The board of directors runs the company on behalf of the owners, but they are not the owners themselves (even though some directors may also be shareholders). Regulators oversee compliance and do not own the company. If the company is publicly listed, the general public can become shareholders, but ownership still rests with those who hold the shares.