Revision:How a company is run

TSR Wiki > Study Help > Subjects and Revision > Revision Notes > Business Studies > How a company is run

1. The Managing Director is responsible for the day to day running of the company.
2. The policy of the company is planned by the board of directors, which at least (i.e. the Managing Director) must be active in the business.
3. The Chairperson of the Board leads and represents the board.
4. The Board of Directors are responsible for the performance of the company to the shareholders
5. The owners of the company have more of a say by how many shares they own (1 share = 1 vote).
6. Shareholders receive a copy of the Annual Accounts with their notice of the Annual General Meeting.
7. The Chairman’s report reports on the performance over the past year and outlines plans for the future.
8. The Annual Accounts show the financial position and the years trading figures and profit.
9. The shareholders can be confident that the accounts are correct because they have to be audited or certified as correct an outside firm of accounts.
10. A shareholder doesn’t attend a meeting then they may vote by means of a “proxy” form, which the shareholder fills out with his or her signature.
11. You are effectively in control of a company if you own at least 51% of the votes, (which means that you cannot be opposed by voting).

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