What defines a shareholder in a company?

A shareholder in a company is defined by their ownership of shares in that company. This means that possessing shares provides individuals with a stake in the company's equity and a potential claim on its assets and profits. Shareholders usually have the right to vote on certain key matters affecting the company, such as board elections and significant corporate transactions, but the fundamental aspect that defines them is their ownership of shares.

While voting rights can be an important feature of a shareholder's role, not all shares carry votes, and thus voting rights alone cannot accurately define a shareholder. Employment status or directorship does not inherently confer shareholder status, as these roles involve different relationships with the company. Therefore, the correct answer highlights the essence of what a shareholder is—someone who owns a portion of the company through shares.