What are the differences between shareholders and directors?
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Company Shareholders and Company directors are different in comparison in the following rights and obligations
Shareholders' rights and obligations are as follows:
• To take part in meetings of shareholders, and entitled to voting power in proportion of shareholding
• To understand the operating and financial conditions of the company
• To elect and to be elected as members of Board of Directors
• To obtain dividends
• To pre-empt shares transferred by other shareholders
• To subscribe in priority the shares newly issued by the company
• To have distribution from the remaining property after liquidation of the company
• To consider and pass the annual auditors' report in meetings of shareholders
• To employ or dismiss directors in meetings of shareholders and determine directors' remuneration
• Directors' rights and obligations are as follows:
• To take charge of ordinary operations and decisions of the company
• To keep accounting book and business record
• To take charge of bank account management
• To secure the loan borrowed with the company's property
• To propose profits distribution scheme
• To propose registered capital increase scheme
• To convene meetings of shareholders
• To execute resolutions passed at meetings of shareholders
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