How shareholders affect the strategy in the company?
please give a several examples.
- PKW ( PJR )Lv 71 decade agoFavorite Answer
A shareholder normally not involves in the day-to-day operation of the company he owned unless he is also in the capacity of being a director. The board of directors is the core of the company. Any strategy, daily operations etc.. are vetted in their hands. However, the powers of the directors are coming from the shareholders who have the legal power to appoint and/or remove a director in accordance with the Articles of Association of the company and the Companies Ordinance as well. So, the life of the company is in the hands of the shareholders in the Annual General Meeting or an Extra-Ordinary Meeting of Shareholders when the directors are being appointed, vacated or terminated. Technically speaking, only person with high proficiency, strategical mind and for the best interest of shareholders could be appointed as a director.