WHO OWNS A
COMPANY?
(c) St Patrick's Cathedral Grammar
School Form 6 2005
Companies? Huh?
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Firstly, let me explain a little
about companies.
A company can be involved
in many different areas of
business, e.g. they may be in
retailing, brokering or real
estate or providing a service.
Companies have limited
liability, that means the
shareholders can only loose ,
what they invested.
Private limited companies are
pretty exclusive, because if
someone is selling their shares,
they must get the approval of
the other shareholders as to
who the new shareholder will
be.
Public limited company, sell
their shares on the stock
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exchange.
School Form 6 2005
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www.startersinformatiecentrum.nl/
Entrepreneurs
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A company normally begins by
an entrepreneur, who having
studied the market and found a
gap in the market or found a new
idea altogether takes it and builds
a business around it.
The entrepreneur must then
either, find investors to endorse
his business or take the finance
responsibilities himself.
He can either get a loan or form a
company and start selling shares.
The shareholders become coowners with the original
Entrepreneur(s), who himself if he
invested ,money in the company
becomes a shareholder.
An entrepreneur like Richard
Branson owns a business but really
it is just another project to them so
someone else must manage it for
them.
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(c) St Patrick's Cathedral Grammar
School Form 6 2005
shareholders
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Shareholders invest in a company
by buying shares. The more shares
they have the more influence they
have in a company. Shareholders
don’t own the whole company but
have a say as far as the AGM
matters are concerned. They have
one vote per share and vote to
appoint directors to oversee the
running of the company. Even
though a shareholder wouldn’t
have much say in the running of a
company, the company itself would
be in a dire straits, if these valued
shareholders didn’t invest as they
do.
(c) St Patrick's Cathedral Grammar
School Form 6 2005
MANAGERS
Directors do not normally
have time to run the
company on a day to day
basis, so they appoint
managers to run the
everyday affairs of the
company and achieve the
objectives and aims of the
company. The manager
must make sure that
these aims must be
reached through the
people in the business.
The manger may or may
not be a shareholder in
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the company.
School Form 6 2005
EMPLOYEES
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Employees are very important to
the company, but they do not
own the company.
(c) St Patrick's Cathedral Grammar
School Form 6 2005
conclusion
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In the end we can see that it is the shareholders
who own a company.
(c) St Patrick's Cathedral Grammar
School Form 6 2005