Majority Shareholder
A shareholder who owns more than 50% of a company's voting shares.
Definition
A majority shareholder owns more than 50% of a company's voting shares, giving them control over shareholder votes including board elections and major corporate decisions. In early-stage startups, founders are often majority shareholders. As more rounds are raised and equity is diluted, no single party may hold a majority, but investors may collectively hold majority control through preferred stock voting provisions.
Why it matters
Whoever controls the majority of votes controls major company decisions. If founders lose majority control after multiple funding rounds, investor interests may take priority, affecting decisions about exits, equity plans, and company direction.
Example
After Series B, the founder still holds 35% of shares but investors collectively hold 45%. No single entity has majority control, but if both VC firms vote together, they can control 45% and only need one additional vote to reach a majority.