Appellate Practice Attorney serving New York, NY
The owners of equity in partnerships are partners. Technically, the owners of equity in corporations are shareholders. It can be important that shareholders, even 50% shareholders, not refer to themselves as partners, since partners can be personally liable for partnership obligations. Shareholders are (with very rare exceptions) not personally liable for corporate obligations, which is one of the main reasons that people incorporate, rather than forming partnerships.
Corporations can award shares, or the right to buy shares, to employees as part of their compensation, thereby affording the employees the opportunity to become part owners of the corporation.
Answered on Feb 05th, 2014 at 3:56 PM