Stockholder Law and Legal Definition

Stockholder means the owner of one or more shares of stock in a corporation which has a capital stock. Persons become stockholders either by original subscription, by direct purchase from the corporation, or by subsequent transfer from the original holders.

The stockholders of a corporation are not creditors. It is a fundamental rule of corporation law that one cannot be at the same time both a stockholder and a creditor of a corporation in respect to the same funds hazarded in the corporation enterprise. [Oklahoma Hotel Bldg. Co. v. Houghton, 202 Okla. 591 (Okla. 1949)].

Also, a stockholder in a corporation, however large his holding, is not, in legal contemplation the employer of persons working for the corporation. [J. F. Parkinson Co. v. Building Trades Council, 154 Cal. 581 (Cal. 1908)].