Question

Describe the difference in director, officer, and shareholder in these 6 questions.

1.What is your function in the corporation? (what do you do)\

2.how did you become a ____?

3.Can you vote? If so, for what?

4. Are you liable for corporate debts or obligations?

5. Can you be personally liable for actions taken in your role? when or how?

6. Are you compensated(receive money) for or in your position? if so, how?

Answer 1

1)  

Director - Making major business policies and decisions e.g shareholder will get dividends or not, acquisition of some other company, etc decisions are taken out by me as a director of the company.

Officer - As an officer, all the decisions taken by the directors of the company are implemented by me. All-day to day work decisions are taken by the officer of the company.

Shareholders- I can decisions related to the company's overall performance. e.g decision when a company liquidates, decision-related constitution, alternation of the company.

2)

Director - if I form a company, or have a major share of the company with me i.e more than 50 percent I can become a director, also if I am a member of the board of the company, also if Ias an employee I become competent enough. e.g top-level managers can land one to the position of director.

Officer - I can take in part in the recruitment process of the company also when I am a long term junior employee of the company by means of promotion I can become an officer in the company.

Shareholder - By buying stocks of the company I can become a shareholder

3)

Director - As a director of the company I have voting rights.

Office - I have no voting rights as I am an employee.

Shareholders - I have the right to vote on matters that directly affect my stock ownership.

4)

Director - I am not liable for personnel debts.

Office - I am not liable for personnel debt

Shareholders - I am not liable for any debts of the corporation.

5)  

Director - I can be personnel liable, the director usually has to follow all the fiduciary duty which are related to the corporation. and are held liable if any discrepancy arises in doing that duty.

officer - I can be held liable for the action taken by virtue of my position in the company.

shareholders - I am not liable for any role as I only own shares of the company.

6)

Director - As a director corporation I will get compensation in the form of salary.

Officer - I will get paid as a fixed compensation offered as an employee of the company.

Shareholders - I will be paid as dividends, from the share of profit that the company makes which is proportional to the number of shares I have in the corporation.