Building a company is not a one-man show. Though the director is the owner of a company, he needs a set of trustworthy people with whom he can conduct the company’s business. These people are responsible for taking the company to new heights. Strong support from the team members helps in increasing efficiency and also improves the ability to focus on being in the game for the long run.
Let us see the organisation hierarchy and how their role helps in the management of the company.
A shareholder is a person or a company that has ownership rights in a company by investing in the company’s shares. Shareholders enjoy the profits earned by the company’s success and also have the right to attend the company’s board meetings. Shareholders play an important role in framing the profits of the company and also appoints the director of the company. There are three types of shareholders:
Equity shareholders are the main shareholders in a company and are a part of the company itself.
Preferance shareholders have no voting rights in the company. As their status is preferred. They receive fixed dividends, and their dividends are paid before equity shareholders.
Common shareholders own company’s common shares. They are the more established type of stockholders, and they have the right to vote on matters concerning the company and have control over how the company is managed. They can file a lawsuit against the company for any wrongdoing that can potentially harm the organisation.
The directors of a company play a critical role during and post incorporation of a company. A company’s directors constitute the Board of Directors and are in charge of the management and administrative duties of the organisation. They supervise the activities of the organisation and play a huge role in its progress and development. The company’s directors should always act ethically and morally to advance the aims and objectives of the company.
The board of directors appoints a managing director for managing the company’s affairs. The managing director with aid and assistance from other directors will select and employ senior managers or officers related to the domain of company management
It is mandatory for every registered company to prepare and maintain a proper book of accounts. The financial statements issued by the company have to conform with the accounting principles issued by the Institute of Chartered Accountants of India. To carry such responsibilities, the company appoints an auditor.
Officers of a company are appointed by the Board of Directors to hold various top-level roles and responsibilities within the company.
CEO stands for the chief executing officer. They are responsible for taking management decisions for conducting the daily business of the company
COO stands for the chief operating officer. They must oversee ongoing business operations and is answerable to the CEO of the company.
CFO stands for the chief financial officer who handles the finance of the company. His duty involves planning, budgeting, accounting and other finance-related business
CTO stands for chief technology officer. His duties involve managing technology, development and maintenance of technology assets and policies
CMO stands for chief marketing officer whose main role is to oversee the marketing strategies of the company. His duties are to head the sales and marketing team of the company
CLO stands for the chief legal officer who is the legal executive of the company. He checks on the working of the company according to law and helps the company to avoid indulging in fraudulent means.
Manager’s main responsibility is to manage the effective business of the company. He leads a set of people who expertise in their field and he has to report their working to the concerned officers. Companies always rely on the managers and utilise them to maintain a successful business model. There are various types of managers appointed in a company such as :