Business Studies

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GCSE

Business in the Real World

Question

What is the disadvantage for some Shareholders of a PLC?

1 year ago

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1 Reply

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Fanny Stamm

Public Limited Companies can have a lot of shareholders. However, some Shareholders may not own as many shares as others. What is the disadvantage of this?

1 Answer

Faraz H Profile Picture
Faraz H Verified Sherpa Tutor ✓

to infinity and beyond!

The main disadvantage of being a small shareholder is as the name says, you hold a fewer amount of shares than other individuals, or entities. This means that you may have limited rights as you are not a majority shareholder and may not be involved in key business decisions to discuss the direction the business will go. Usually small shareholders invest in businesses for profits rather than control

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