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

[Divya E R]

Shareholders- Shareholders are seen as owners of the company. they invest their capital in the company and thereby they own the right to control the affairs of the company. They are also called stockholders, they have the right to vote on certain matters. They have the right to transfer shares freely .
Promoter- Promoters are investors in the company and have rights to the profits of a company. their role is to decide to investigate all the legal requirements for the company and fulfill them.
Director- Directors are the manager of the company who manages the day to day operations of the company. They have the responsibility of implementing and maximize the wealth of shareholders or investors. The directors take a day-to-day decision in a meeting of the director, which is also known as the Board of Directors of a company.

[Sunny Sailor]

Shareholders are individuals who invests in an organization and purchases shares from the organization. A shareholder who holds the shares of the organization is also the owner of the organization.

Promoters are the individuals who develops/builds the organizations business. The promoter do not necessarily have to assume the role of MD/CEO of the organization. Promoters play a pivotal role in the organizations strategical development.

Directors are individuals appointed or elected by shareholders as MD/CEO of the organization. Shareholders are also appointed as directors primarily to execute and achieve the organizations business objective.

[Author]

Posts