Q&A - Who does what in a company?

There are various roles in a company and it is important to make sure that you do not confuse them.

Shareholders are the owners of a company. They provide the share capital for the firm, share the profits and take decisions about the business.

Directors make the day-to-day decisions about what the business does. Importantly, though, they act on behalf of the shareholders.

In many cases, shareholders are also the directors and managers of a company. This occurs regularly in small, medium-sized or family firms.

However, in larger or more complex businesses where there are many shareholders, it is common for the shareholders to play little if any part in the day-to-day decision-making. In this situation, shareholders rely on their chosen management team to identify and action the right strategy for the firm.