Legal Definitions - stakeholder

In business law, a stakeholder is someone who has an interest in a company or project and could be affected by its performance or outcome. This could include:

• Shareholders
• Investors
• Employees
• Suppliers
• The community
• The government

For example, if a company is doing well, shareholders and investors may benefit by making more money. If a company is doing poorly, employees may be at risk of losing their jobs.

In some cases, a stakeholder may be a third party who holds or possesses money or property that is in dispute between two or more parties. This third party is called a stakeholder because they have a stake in the outcome of the dispute. For example, an insurance company may be a stakeholder in a dispute over who should receive a payout.

If there is a dispute over who should receive the money or property, the stakeholder may file an interpleader suit. This allows a federal district court to determine who should have the property. By doing this, the stakeholder can avoid being held liable by multiple parties.