This topic contains 471 replies, has 462 voices, and was last updated by  Divya E R 1 month, 1 week ago.

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    Who are share holder, promoter, and director? What is the role and rights of them?

    Rank: Level 4

    Share Holder : A person or institution that holds a stock of a public or private corporation. A share holder is a part of the owner of the company.

    Rights and Roles :

    1) Right to Sell the Share

    2) Right to Vote

    3) Right to claim dividend if declared


    Promoter : It can be a founder himself or a institute that promotes the stock to solicit general public to invest in the company to raise fund.

    Rights and Roles :

    1 ) A promoter ( if owner) conceives an idea for the setting-up a business.

    2) Makes preliminary investigations and ensures about the future prospects of the business.

    3) Prepares various documents and gets the company incorporated.

    4) Raises the required finances and gets the company going.

    Managing Director : A managing director is employed by the business, often by the chairman to run the organization. He manages the board of directors and oversees the performance of the business thus reporting back to the chairman.

    Rights and Roles,

    1) Maintaining the overall performance of the company.

    2) Producing and planning strategic operating plans and objectives for the long-term future.

    3) Keeping in regular contact with the board of directors or chairman and to maintain a positive relationship.



    Rank: Level 1

    The person who buys the shares of company is known as share holder.
    An individual or company that, for a fee, helps raise money for some type of investment activity. Most often, promoters raise money for a company through offering investment vehicles other than traditional stocks and bonds, such as limited partnerships and direct investment activities. He is known as promoter.
    A director is a person from a group of managers who leads or supervises a particular area of a company, program, or project. Companies that use this term often have many directors spread throughout different business functions or roles.


     Abirami Duraisamy 
    Rank: Level 5

    Share holder is the one who hold the share of the company and will be owner to the company. However, share holder do not have any rights on business decisions and directions. Share holder will get notified on the companies performance and will get the dividend if provided by the company. Shares can be sold at any point in time by the share holder.

    Promoter is the one who promotes the business and raise the funds through IPOs.

    Director is the one responsible for business execution and decisions. However director do not have rights on the profits of the company and will only be paid through salary.

    Generally Promoter and Director will be the same, who will hold the maximum shares of the company.

    Rank: Level 5

    share holders – a person, company or institution that holds the shares of the company and is entitled to its profits or losses. they have a responsibility to ensure that the company runs well.

    Promotors – A promotor is the person who forms the business and gets it started. he is responsible for initialising of the business ie. planning for type of business, arranging funds, and ensuring that the activities of the business are happening in the required order.

    Director – person who directs the company, his role is to achieve the goals of the company. appoint senior management.

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