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Director vs Shareholder

Updated: Apr 3

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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