Duties of Corporate People

Duties of Corporate People

Introduction

A corporation is a legal organizational unit which is formed with the consent of the state and is certified to carry out daily business. A collective corporation holds a group of individuals, commonly made up of a board of directors, shareholders and officer level staff whereas a sole corporation has a single operating individual. The role of these directors, shareholders and officers in a collective organization is to manage and organize the various phases of a corporation geared towards meeting its targets and goals of profit maximization and to amplify shareholder returns (Mallor et al, 2010).

It is one of the duties of the shareholders to appoint or elect the directors who in turn hire officers. It is the job of the director or directors of an organization to make decisions aimed towards fulfilling the shareholders objectives which are carried out by the officers. The corporate structure is built to operate in the best interest of the shareholders and it is the duty of the board of directors to govern the officers and other directors to ensure a smooth running legal operation which utilizes the law to oversee that the requirement of the shareholders are fulfilled.

Discussion

Shareholders

Any individual who holds legal share(s) in a public or closed organization is called a shareholder. They do not own the corporation but have various powers within the organization like nominating and/or voting for directors. They may also sell or trade their shares without prior notification, expect payments, and buy new shares issued by the company (Mallor, et al, 2010).

Individuals like laborers, suppliers and customers as well as the community may be regarded as shareholders as they hold a vested interest in the corporation. Such individuals can be regarded as indirect shareholders. Shareholders are the individuals who have invested money ...