SHAREHOLDER & DIRECTOR The shareholders are the owners of the company. The business, when it incorporates, issues shares of ownership in the form of share certificates. These are paid for either by money, property, or services. In theory, the Shareholders dont control the policies of the company ( although in actual practice, they often do). The shareholders choose the directors, who, in turn, are responsible for managing the business and establishing its actions and conduct. In a small company, the shareholders will normally be the directors. But they dont have to be. The directors can include “outside,” such as the companys lawyer, its accountant, and some of its key personnel, who might not be shareholders. While its true that shareholders technically control the directors, you can get in a quarrel- where you, as the majority shareholder, are outvoted by the other directors. To avoid this, you should provide in the Articles of Association that the controlling shareholder can remove the directors at any time ------------------- Inbox or call (08033974873) for free consultation - On how to register your Company, Business Name, Association, Club or Foundation, Trademark in Nigeria On how to obtain Various Business Permits and Licences
Posted on: Fri, 07 Mar 2014 12:09:56 +0000
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