A majority shareholder is an entity or individual that owns over 50% of a company's outstanding shares, granting them significant control and influence within the organisation. This control is exercised through voting power, board representation, and decision-making rights. Majority shareholders also enjoy privileges such as access to critical corporate information, control over management appointments, and flexible exit strategies. These ensure greater profits and wealth creation. To gain insights into a company's governance and decision-making dynamics, one needs to understand the role of majority shareholders.

Owning the stocks of a company makes you a shareholder. Most shareholders own a relatively small percentage of the total company’s stocks. However, in some cases, shareholders may end up owning most of the shares, or more than 50% of the shares issued by a company. This makes them a majority shareholder. 

A majority shareholder is best described as an individual or entity that holds more than 50% of the total outstanding shares of a company's stock. This gives them the power to easily sway voting outcomes and change the direction in which the company is headed. Therefore, majority shareholders hold notable control over the day-to-day affairs of the company, and can decide its fate in the future. Note that the exact percentage required to be considered a majority shareholder usually depends on the company's bylaws and the legal framework in the jurisdiction where the company is incorporated. 

Majority shareholders are known for their essential role in decision-making processes within a company. This makes them a pivotal element in the complex world of corporate ownership and management. As an investor, it is crucial to understand the concept of majority shareholders since they wield significant influence over company operations. However, to understand the concept in its entirety, we must delve into the definition of a majority shareholder, their rights, and the privileges they enjoy.