{% extends 'base.html' %}
{% load staticfiles %}
{% block head %}
{% endblock head %}
{% block body %}
When we hear the word ‘company’, we all think we know what the person is talking about. We deal with companies every day. Most of us work for a company, and we certainly buy things from them.
Companies also have directors. The shareholders appoint the directors to manage the capital of the company on their behalf. Often in small companies the shareholders and directors are the same people. But in larger companies there may be thousands of shareholders and only a handful of directors. In many respects, directors are like politicians, representing the shareholders. The directors act as a group, which is referred to as the ‘board’. arcu.
Today, companies have become so commonplace that we often forget the important social role they play – in enabling us to pool massive amounts of cash to undertake risky activities for the social good. Some say we would still be hanging out in forests, firing arrows at each other, were it not for the company.
Technically, directors are also not responsible for what happens to the company. But this only goes so far. Because the directors are making the day-to-day decisions on behalf of the company, the law says they need to be personally responsible for some things, otherwise they would be completely irresponsible.