A majority shareholder is more than just a passive investor. It holds controlling shares of a company and can have a significant impact on how the company is run, from the type of executive recruited to the company’s overall mission and operations. As a result, majority shareholders tend to be actively involved in the management of the company; and their role can be quite influential, as it may involve serving on the board of directors, serving as chief executive officer or other top executive positions, and having a significant level of influence on decision-making.

Most companies have separate voting shares and non-voting shares. In the case of the majority shareholder, they have voting and control the majority of the voting shares. As such, the majority shareholder wields significant power over the company’s destiny. Majority shareholders will often serve as active members of the company’s board and may have significant decision-making power when it comes to the direction and activities of the company.

In most cases, the majority shareholder is closely affiliated with the company, be it as its principal founder, or as a major investor in the company or its parent group, such as a venture capital group or private equity firm. As such, majority shareholders may regard the company to be their own personal asset, and will be very interested in ensuring its success, as it directly and positively affects their wealth. This can have a particular influence on the company’s decision making, as majority shareholders tend to have an extreme bias in favor of the company they have a vested interest in.

In many ways, the majority shareholder sets the tone for the company, and as such has tremendous responsibility to uphold the company’s mission, values, and strategic goals. This involves more than just making sure that everyone is in line with those objectives; it also involves determining the best course of action to ensure the company’s long-term success. And because of the majority shareholder’s powerful role, it is important for companies to vet and properly approve individuals capable of taking on the role of majority shareholder.

In summary, a majority shareholder is someone who holds more than 50% of a company’s voting shares and in many cases, will dictate its direction. A majority shareholder often has a personal vested interest in the company, and so their decisions are not always what is best for the company in the long-term, but instead is often swayed by the short-term desires and goals of the majority shareholder. This power responsibility should not be taken lightly, and companies should be sure to approve or vet those who are capable of exercising such power responsibly.