Resources Company management Rights and obligations of shareholders and managers

Rights and obligations of shareholders and managers

A standard limited liability company has shareholder(s) and manager, where a single person can share both roles.

The company has a capital which is divided into equal shares. The capital shares are owned by the shareholders. A shareholder can own multiple shares of the company. The amount of shares as part of the whole company capital determines two main things:

1. Dividend as a share of the annual profit;
2. Votes in the general assembly

The shareholders form a general assembly which doesn’t manage the company but is entitled to vote on the most important decisions like appointing a manager, profit distribution and changes in the company.

The company manager is in charge of the business operations – company representation, signing agreements, hiring and firing employees. A company can have multiple managers with various forms of combined representation – together, separately or in another way.