Business Loans

In this section, we will discuss the different roles of the organization’s members—the shareholders, directors, officers, and employees.

Shareholders

Shareholders are the people who own stock in the corporation; these people can:

•    Approve the dissolution of the organization.
•    Modify the articles of incorporation and regulations.
•    Support mergers and reorganizations.
•    Appoint or remove the board of directors.
•    Consent to the sale of corporate assets.

Directors

Directors make financial and policy decisions for the corporation; they can:

•    Authorize financing for the corporation.
•    Determine how to manage real estate owned by the corporation.
•    Determine wages for officers and key employees.
•    Approve the issuance and distribution of stock.
•    Choose corporate officers.

Officers

Officers are responsible for the administration of the daily operations of the corporation. The president is in charge of operations, the secretary manages and keeps the records, and the treasurer manages the finances.

Employees

In many small organizations, the owners are the employees of the corporation because they receive most of their financial benefits through salary and other compensation. The employees put into action all management decisions.