The real owners of a corporation are its shareholders. Shareholders are individuals or entities that own shares of stock in the corporation, which represent a claim on the company’s assets and earnings. When you buy a share of a corporation, you acquire a small ownership stake in that company.
Corporations operate as separate legal entities, which means they can enter into contracts, sue, and be sued independently of their owners. This structure provides limited liability protection to shareholders, meaning they are only responsible for the corporation’s debts up to the amount they invested. Thus, the real ownership is spread across all shareholders, and they collectively influence corporate governance through voting rights, typically exercised during annual meetings.
While shareholders are the owners, management and the board of directors oversee the day-to-day operations of the corporation. They make strategic decisions and manage resources, but they are ultimately accountable to the shareholders, who can hold them responsible through voting or other means if the company underperforms.