Definition from Nolo’s Plain-English Law Dictionary

1) In law, a person holding money or property in which he or she has no right or title while awaiting the outcome of a dispute between two or more claimants to the money or property is settled. Once the right to legal possession is established by judgment or agreement, the stakeholder has a duty to deliver to the owner the money or property. (See also: escrow agent) 2) In business, a person or company that can be affected by an organization's actions and therefore has an interest in the outcome of a project or activity.

Definition provided by Nolo’s Plain-English Law Dictionary.