Weekly Minute 59 - Owners, Shareholders, Directors etc

 An understanding of the levels of ownership and responsibility is absolutely critical when two or more technicians get together to build a business.  It is also important when the founding owner wants to implement Succession or Secession Planning.  In small business, owners usually play all four roles. 
As a Shareholder (Owner) of any corporation, large or small, your ownership only allows you the right to vote at Meetings (General or Special) at the level reflected by your shareholding.  Your return for risk as an Owner is a share of the profits of the business. 

You have the right to vote to elect the Directors.  These are people you trust to maximise the return you get from your investment in the business.  Often the information needed to make decisions and recommendations are passed to the Board of Directors by the management team.  

In Partnerships, Partners share the Owner/ Director responsibilities and share the profits of the business as their reward for both their risk and their effort. As a business Owner you make your decisions about the direction of the business as Director/Partner, not as an Owner.   

The other two levels are: Managers and Workers.