A director and a shareholder bear different responsibilities in a company. Here are a few differences that you should know:
DIRECTOR | VS | SHAREHOLDER |
Not owner, but responsible for managing company’s affair | Ownership | Owned shares in the company, is partial owner |
Major decisions, set company policies, and oversee operations | Decision-making | Rights to vote on important company matters |
Receive compensation for their services | Profits-sharing | Receive dividends from the company’s profit |
Can be held liable personally for breaches of duty or wrongful conduct | Liability | Limited liability protecting their own assets |
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