Director vs Shareholder: Who Has More Power?
The Role of a Shareholder
- A Shareholder is the owner of the company
- Ownership is determined by the shares they hold
The Role of a Director
- A Director is responsible for managing the company
- Directors are appointed by shareholders to oversee the company's day-to-day operations and decision-making
From a Legal Perspective
- Shareholders hold the ultimate control over the company
- Through a General Meeting, they may:
- Appoint directors
- Remove directors
- Change the composition of the Board
From an Operational Perspective
- Directors are responsible for the day-to-day management of the company
- Their responsibilities include:
- Making business decisions
- Signing contracts
- Hiring employees
- Approving investments
- Managing the company's operations
Who Has Greater Power?
- Shareholders：
- Hold the company's ultimate control
- Decide who serves on the Board of Directors
- Directors：
- Hold the management authority
- Run the company's daily operations and execute business decisions
Summary
- From a legal and ownership perspective, shareholders have greater authority
- From a management and operational perspective, directors have greater authority
- Therefore, the answer depends on whether you are referring to ultimate control or day-to-day management authority