The word shareholder in the context of board of directors and shareholder equity appears to be a misnomer. The word stakeholder is more accurate. In the context of shareholders and their equity, it refers to the person holding the same stake as the company.
It’s not always clear whether this person is the actual one who holds the company’s money or a representative that holds it for them.
Stakeholders generally have a personal stake in the company. The company itself is not necessarily the source of this stake, but the person who holds the company’s equity is. This means that the stakeholder is also responsible for the company’s direction. So if a company is doing poorly, the stakeholder has a reason to know about it, and if the company is doing well, the stakeholder has a reason to know about it.
I guess shareholders are not necessarily held to the same standards as stakeholders, because shareholders can easily be bought out by a billionaire. Stakeholders are not held to these same standards though, because the business model of a company depends on it. To sell a company, the stakeholders must be willing to sell their shares back to the company in exchange for a better deal.
While there is a difference between shareholder and stakeholder, I think it’s actually the difference between being a shareholder and an employee. Stakeholders are shareholders as long as the stakeholder is able to sell their shares back to the company. Employees are shareholders only if the company has a board which is able to manage their pay, benefits and other issues that are important to them.
For shareholders, the company board makes the decision (if they want) to decide whether the shareholder can sell the shares back to the company. The question for the company board is whether the shareholder should be offered a better deal to sell their shares back. For employees, the board has the authority to hire or fire someone, which is important for their career. Also, it should be noted that employees have the option to opt out of this board role and do the work themselves.
To shareholders and employees, the board has a much more important role in determining how to allocate the company’s resources. It is not a board with the power of the president, but it does have the power of a CEO. For shareholders, this means they can vote to approve changes to the company’s business plan or to approve a CEO candidate for the company.
For executives, the board is more of a shareholder’s club where they have less power. In addition to that, it is not a board that determines the company’s policies or how the business is run. If the board determines the company’s policies, the CEO has the power to implement them. But this board doesn’t get involved in the day-to-day decisions that a CEO would.
A CEO candidate is the company’s shareholder and if it isn’t a candidate then it has no impact on the company’s operations. This isn’t the case with any CEO.
The board makes decisions that affect the companys business. While the CEO is not a shareholder they are a stakeholder. The board and shareholders are not at a monopoly because they arent connected to the internet or the economy.
