What are the differences between shareholders and directors?
A： Shareholders and 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 • The meeting of shareholders shall consider and pass the annual auditors’ report • To employ or dismiss directors in shareholders meetings 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
