TSR Wiki > Study Help > Subjects and Revision > Revision Notes > Business Studies > How a company is run
- The Managing Director is responsible for the day to day running of the company.
- 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.
- The Chairperson of the Board leads and represents the board.
- The Board of Directors are responsible for the performance of the company to the shareholders
- The owners of the company have more of a say by how many shares they own (1 share = 1 vote).
- Shareholders receive a copy of the Annual Accounts with their notice of the Annual General Meeting.
- The Chairman’s report reports on the performance over the past year and outlines plans for the future.
- The Annual Accounts show the financial position and the years trading figures and profit.
- 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.
- 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.
- 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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